Tax Memo - Gambling Activities

Tax Memorandum TO: Mr. Green FROM: DATE: Week 4 RE: Gambling Activities set off One and applicable Case Law, statute & Regulations It has come to our management that you requested to live which criteria is used to determine if your drama activities bring about a deport or commercial enterprise status for the study income tax purposes and if we think your romp activities qualify for trade or demarcation status. The case of Commissioner v. Groetzinger, 480 U.S. 23 1987 is approriate for deciding if the gambol physical process has trade or business status. The Supreme Court talk 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 humour: done in good faith for profit forge reasons, done in full-time basis or fullest work if he has employment elsewhere, maintaining records of da ily wagers, net profit and losses, the gambling action at law is solely for his own cipher yet he does not 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.

sh be 62(a) (1) of the Internal Revenue mark shows the deductions permitted and they include the deductions that are as a result of the trade or business activity. Mr. Green, you stick an interest in gambling every weekend, thus you are a frequent gambler notwithstanding you do not do it for profit making p urpose. Furthermore, you have a physician j! ob in Chicago, so gambling is not your profession. Therefore, ruin 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 give-up the ghost 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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