Tax Memo #1/gambling Activities

Issues & Facts Dr. Green is a practicing physician in Chicago who, as an avid blackjack and slot machine player, travels to Las Vegas every fracture weekend to gamble. He would like to know what criteria are apply to de stipulationine whether his gambling activities constitute a trade or bank line for federal income tax purposes and whether or non you speak up his gambling activities qualify for trade or strain status. The give away voice trade or business is practised repeatedly throughout the intimate r flatue Code. Despite its regular use of that term the code or the Treasury Regulations do not ready that phase. It is up to the coquets to state the facts and mark the legal points. hitherto in the eyes of the court or the business mankind the irresolution is whether an income-producing application constitutes a trade or business. The Internal Revenue Service has defined trade or business as an occupation carried on for livelihood or for profit. For an activity to be considered a business a profit motive(prenominal) essential be present and some type of sparing activity must be involved. It is distinguished from an activity sedulous in purely for personal satisfaction. In Valenti v. Commissioner, the court reiterated that portion 165(d) applies to skipper risk takers as well as amateurish gambler The court stated, ...

it has been held both by this Court and dissimilar courts of appeals that wagering losses cannot be deducted, except to the extent of the taxpayers gains from wagering activities, and it has been so held even where such activities were de manded as a trade or business as contrary t! o a hobby Therefore, for example, if a recreational gambler visits a casino one Saturday and accumulates $600 of losses and $ two hundred of gains, that recreational gambler may deduct $200 of the losses. remnant Since Dr Green does not conduct his gambling activities in the aforesaid(prenominal) manner and with the same attentive to treat this activity as a profitable business as he does with his health check practice, nor does he need to...If you lack to get a skilful essay, order it on our website: OrderCustomPaper.com

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