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  • Losses, and $200 of Business Expenses. The Taxpayer Must Report The $400 of

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    taxcrunch
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    A taxpayer had $400 in gambling winnings, $500 in gambling losses, and $200 in business expenses related to gambling. The taxpayer must report the $400 in winnings as income. They can deduct $400 of losses against the winnings, fully offsetting the income. The remaining $100 in losses cannot be carried over to future years. The taxpayer can also deduct the $200 in business expenses.

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    0912012

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    A taxpayer had $400 in gambling winnings, $500 in gambling losses, and $200 in business expenses related to gambling. The taxpayer must report the $400 in winnings as income. They can deduct $400 of losses against the winnings, fully offsetting the income. The remaining $100 in losses cannot be carried over to future years. The taxpayer can also deduct the $200 in business expenses.

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    Losses, and $200 of Business Expenses. The Taxpayer Must Report The $400 of

    Uploaded by

    taxcrunch
    A taxpayer had $400 in gambling winnings, $500 in gambling losses, and $200 in business expenses related to gambling. The taxpayer must report the $400 in winnings as income. They can deduct $400 of losses against the winnings, fully offsetting the income. The remaining $100 in losses cannot be carried over to future years. The taxpayer can also deduct the $200 in business expenses.

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    of 1

    ID: CCA_2009021216482148 Number: 200912012

    Release Date: 3/20/2009


    Office: ----- ----------
    UILC: 165.08-00, 162.00-00

    From: ------------------
    Sent: Thursday, February 12, 2009 4:48:23 PM
    To: -------------------------------
    Cc:
    Subject: RE: Memorandum AM2008-013

    Hi ---------

    That is correct. Here is an example if it helps.

    Taxpayer, a professional gambler, has $400 of wagering gains, $500 of wagering


    losses, and $200 of business expenses. The taxpayer must report the $400 of
    wagering gains as gross receipts. The taxpayer then may subtract only $400 of his
    $500 of wagering losses from gross receipts, completely offsetting his $400 of wagering
    gains. The taxpayer may not carry over the excess $100 of (unused) wagering losses
    to offset wagering gains or other (non-wagering) income in another taxable year. The
    taxpayer may then, also, deduct the $200 of business expenses.

    Hope this helps,

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