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In addition, in Valenti v.Commissioner, the court reiterated that Section 165(d) applies to professional gamblers as well as recreational gamblers. [6] The court stated, "... it has been held both by this Court and various courts of appeals that wagering losses cannot be deducted, except to the extent of the taxpayer's gains from wagering activities, and it has been so held even where such ...
United States, 633 F. Supp. 912 (D. Nev. 1986), [1] was a federal tax refund case, decided in 1986, regarding the U.S. federal income tax treatment of the gambling income of a professional gambler. Because of this case, gambling winnings in the United States can in certain cases be treated as business income for federal income tax purposes.
This facilitated amendments to 2011 tax returns to claim a casualty tax deduction. [4] Gambling losses, but only to the extent of gambling income (For example, a person who wins $1,000 in various gambling activities during the tax year and loses $800 in other gambling activities can deduct the $800 in losses, resulting in net gambling income of ...
In the tax year at issue in the case, the taxpayer had earned $70,000 in gambling winnings. [3] The Court found that the constant and large scale effort the taxpayer made towards gambling qualified it being a trade or business. [7] It was more than just a hobby or amusement; [3] it was his livelihood. [3]
Under federal income tax, a loan is not gross income to the borrower because the borrower has an obligation to repay the amount received and there is no accession to wealth. [12] Along those same lines, the lender may not deduct the amount of the loan because the loan merely converts one asset (cash) into another asset (a promise of repayment ...
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Gambling (also known as betting or gaming) is the wagering of something of value ("the stakes") on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three elements to be present: consideration (an amount wagered), risk (chance), and a prize. [1]
A luxury tax in professional sports is a surcharge put on the aggregate payroll of a team to the extent to which it exceeds a predetermined guideline level set by the league. The ostensible purpose of this "tax" is to prevent teams in major markets with high incomes from signing almost all of the more talented players and hence destroying the ...