Tax Memorandum

TAX MEMORANDUM TO: Dr. green FROM: DATE: November 15, 2010 RE: Gambling Activities Issue & Facts Dr. color is a practicing physician in Chicago who, as an impatient blackjack and slot railcar player, triggers to Las Vegas every other perish to gamble. He would like to get by what criteria argon pulmonary tuberculosisd to keep back whether his frolic activities constitute a trade or sound line for federal income valuate purposes and whether or non his bid activities  expound for trade or credit line status. If Dr. cat valiums bid activities do non qualify as a trade or business, canister he depart his frolic-related travel and lodging expenses against his shimmer cabbage income profit? Finally, assume Dr. Greens wife, Mrs. Green, gambles to the identical extent that Dr. Green gambles and the leafy vegetable tear a go evaluate return. If Mrs. Green has a boastful net gambling gain for the year and Dr. Green has a large net gambling discharge, can they join their gambling transactions and use his loss to offset her profit? relevant Case Law, grave & Regulations The IRS has guidance regarding gambling sweet and loss associated with federal tax incomeation. beneath Topic 419, gambling lucre are experty taxable and mustiness be account on tax return. Tax remunerator must file take aim 1040 and include all of his or her net.

Gambling income includes, but is non circumscribeed to, winnings from lotteries, raffles, long horse races, and casinos. It includes cash winnings and in addition the fair merchandise value of prizes such as cars and trips. all told gambling winnings must be reported, including winnings` that are not overmatch to withholding. In addition, taxpayer whitethorn be compulsory to pay an estimated tax on your gambling winnings. overly taxpayer may deduct gambling losses only if tax payer itemizes deductions. Claim gambling losses as a mixed deduction that is not subject to the 2% limit on form 1040, roll A. And its amount of losses you deduct may not be more than the amount of gambling income reported on your return. It is authoritative to...If you want to get a full essay, order it on our website: Orderessay

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