1. Allen visits Reno, Nevada once a year to gamble. This year his gambling loss was $25,000. He commented to you, "At least I didn't have to pay for my airfare and hotel room. The casino paid that because I am such a good customer. That was worth at least $3,000." What are the relevant tax issues for Allen?
2. A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in three years, at which time the principal and interest will be paid. The bank will pay the taxpayer at a 3.5% interest rate each year if he agrees to leave money on deposit for three years. What tax advantage does the Series EE bond offer that is not available with the bank deposit?© BrainMass Inc. brainmass.com June 4, 2020, 3:10 am ad1c9bdddf
1) He can deduct the gambling losses to the extent that he has gambling winnings. If he has no gambling winnings for the year then he cannot deduct any of the ...
This solution provides answers to accounting taxation questions. It involves evaluating taxes issues and tax advantages.