Tax Memo - Gambling Activities

Tax Memorandum TO: Mr. Green FROM: DATE: Week 4 RE: Gambling Activities set off One and relevant Case Law, statute & Regulations It has come to our management that you requested to hunch over which criteria is used to determine if your drama activities bring about a shell out or commercial enterprise status for the interior(a) income tax purposes and if we think your romp activities qualify for trade or p arentage status. The case of Commissioner v. Groetzinger, 480 U.S. 23 1987 is approriate for deciding if the shimmer surgery has trade or business status. The Supreme Court address that some factors had to be considered by the commissioner in determining if a taxpayers gambling activities constitute trade or business status. Treasury Regulation 1.183-2 (a) listed these factors as taxpayers gambling agency: done in good faith for profit devising reasons, done in full-time basis or fullest deed if he has employment elsewhere, maintaining re cords of daily wagers, net profit and losses, the gambling action at law is solely for his own greenback yet he does non function as a bookmaker, the extent the he improves teaching of gambling enterprise and taxpayer claims deductions associated with the conduct of a trade or business for gambling expenses.

division 62(a) (1) of the Internal Revenue jurisprudence shows the deductions permitted and they include the deductions that are as a result of the trade or business activity. Mr. Green, you urinate an interest in gambling every weekend, thus you are a frequent gambler scarcely you do not do it for profit making purpose. Furthermore, y! ou have a doc job in Chicago, so gambling is not your profession. Therefore, factor of your gambling activities qualifies for trade or business status but others do not. Issue ii and Applicable Case Law, Code & Regulations The issue under reach is if you can deduct your gambling-related strike and lodging expenses against your gambling winnings even though your gambling activities did not...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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