Tax Memorandum

TAX MEMORANDUM TO: Dr. green FROM: DATE: November 15, 2010 RE: playing period Activities Issue & Facts Dr. Green is a practicing physician in lucre who, as an zealous blackjack and slot machine player, travels to Las Vegas either other pass to gamble. He would like to know what criteria atomic number 18 used to limit whether his frolic activities constitute a great deal or phone line for federal income assess purposes and whether or non his period of play activities  particularize for swap or business status. If Dr. Greens turn activities do not qualify as a trade or business, cannister he deduct his gambling-related travel and lodgement expenses a move onst his gambling net profit? Finally, assume Dr. Greens wife, Mrs. Green, gambles to the same goal that Dr. Green gambles and the Greens tear a joint tax return. If Mrs. Green has a boastful net gambling gain for the year and Dr. Green has a large net gambling discharge, can they combine their gambling transactions and use his passage to offset her winnings? relevant Case Law, Code & Regulations The IRS has counselor-at-law regarding gambling winning and loss associated with federal taxation. Under motif 419, gambling winnings are experty taxable and essential be account on tax return. Tax remunerator essential file organize 1040 and include all of his or her winnings.

romp income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes change winnings and in addition the fair market harbor of prizes such as cars and trips. all told gambling winnings must be reported, including winnin! gs` that are not type to withholding. In addition, taxpayer whitethorn be compulsory to pay an estimated tax on your gambling winnings. Also taxpayer may deduct gambling losings only if tax payer itemizes deductions. Claim gambling losings as a mixed deduction that is not subject to the 2% limit on form 1040, Schedule A. And its aggregate of losses you deduct may not be much than the amount of gambling income reported on your return. It is important to...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

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