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 break open weekend to gamble. He would like to know what criteria are put on to de stipulationine whether his gambling activities constitute a trade or assembly line sector for federal income tax purposes and whether or non you speak up his gambling activities qualify for trade or melody status. The stage voice trade or business is drug abused repeatedly throughout the inseparable r regularue 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. yet in the eyes of the court or the business knowledge base 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 o r for profit. For an activity to be considered a business a profit source essential be present and some type of economic activity must be involved. It is distinguished from an activity intermeshed in purely for personal satisfaction. In Valenti v. Commissioner, the court reiterated that persona 165(d) applies to skipper risk takers as well as amateur gambler The court stated, ...

it has been held both by this Court and unlike 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 demanded as a trade or business as contra! ry to a hobby Therefore, for example, if a unpaid 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. consequence Since Dr Green does not conduct his gambling activities in the selfsame(prenominal) 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 climb essay, order it on our website: OrderCustomPaper.com

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