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 consort weekend to gamble. He would like to know what criteria are apply to de stipulationine whether his gambling activities constitute a trade or course concern for federal income tax purposes and whether or non you speak up his gambling activities qualify for trade or business status. The cast off voice trade or business is recitationd repeatedly throughout the indispensable r stock-stillue 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. fifty-fifty in the eyes of the court or the business man the irresolution is whether an income-producing application constitutes a trade or business. The Internal Revenue Service has defined trade or business as an action mechanism carried on for liveliho od or for profit. For an activity to be considered a business a profit designer essential be present and some type of economical activity must be involved. It is distinguished from an activity pursue in purely for personal satisfaction. In Valenti v. Commissioner, the court reiterated that ingredient 165(d) applies to skipper risk takers as well as amateurish gambler The court stated, ...

it has been held both by this Court and respective(a) 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 suc h activities were demanded as a trade or bu! siness as contrary to a hobby Therefore, for example, if a inexpert 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. shutting Since Dr Green does not conduct his gambling activities in the analogous manner and with the same attentive to treat this activity as a profitable business as he does with his medical examination 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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