Tax memorandum 1 - Memorandum TO Dr Green FROM Maria E Breijo DATE August 2 2010 RE Tax Memo#1/Gambling Activities Issues stated Dr Green is a

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Memorandum TO: Dr. Green FROM: Maria E. Breijo DATE: August 2, 2010 RE: Tax Memo #1/Gambling Activities Issues stated Dr. Green is a practicing physician in Chicago who, as an avid blackjack and slot machine player, travels to Las Vegas every other weekend to gamble. He would like to know what criteria are used to determine whether his gambling activities constitute a trade or business for federal income tax purposes and whether or not you think his gambling activities qualify for trade or business status. If Dr. Green's gambling activities do not qualify as a trade or business; can he deduct his gambling-related travel and lodging expenses against his gambling winnings? Assume Dr. Green's wife, Mrs. Green, gambles to the same extent that Dr. Green gambles. Assume that the Greens file a joint tax return. If Mrs. Green has a large net gambling gain for the year and Dr. Green has a large net gambling loss, can they combine their gambling transactions and use his loss to offset her winnings? Applicable Law The determination of whether a taxpayer is engaged in a trade or business remains one of facts and circumstances. However, in determining when the gambling activities of a taxpayer constitute a trade or business for purposes of G.L. c. 62, the Commissioner will consider a set of factors. These factors are not exclusive, and are meant to provide illustrative guidance to taxpayers. The burden of proof rests with the taxpayer claiming to be a professional gambler. , 373 Mass. 606 (1977); Uniacke v. Commissioner of Revenue
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This note was uploaded on 02/21/2012 for the course ACCOUNTING 451 taught by Professor Douglasletsch during the Spring '11 term at DeVry Phoenix.

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Tax memorandum 1 - Memorandum TO Dr Green FROM Maria E Breijo DATE August 2 2010 RE Tax Memo#1/Gambling Activities Issues stated Dr Green is a

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