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Different Tax Laws

Use the typical tax primary and secondary resources to include statutes, regulations, IRS guidance, and court decisions to formulate your advice regarding each of the issues listed below:

ISSUES

1. Dr. Green is a practicing physician in Chicago who, as an avid blackjack and slot machine player, travels to Las Vegas every other weekend to gamble. He would like to know what criteria are used to determine whether his gambling activities constitute a trade or business for federal income tax purposes and whether or not you think his gambling activities qualify for trade or business status.

2. If Dr. Green's gambling activities do not qualify as a trade or business, can he deduct his gambling-related travel and lodging expenses against his gambling winnings?

3. Assume Dr. Green's wife, Mrs. Green, gambles to the same extent that Dr. Green gambles. Assume that the Greens file a joint tax return. If Mrs. Green has a large net gambling gain for the year and Dr. Green has a large net gambling loss, can they combine their gambling transactions and use his loss to offset her winnings?

Solution Preview

1. Dr. Green is a practicing physician in Chicago who, as an avid blackjack and slot machine player, travels to Las Vegas every other weekend to gamble. He would like to know what criteria are used to determine whether his gambling activities constitute a trade or business for federal income tax purposes and whether or not you think his gambling activities qualify for trade or business status.
The fact that Mr. Green's gambling activities constitute a trade or a business depend on the examination of the facts n each case. The stipulation is that if the gambling activity of Mr. Green is pursued full time, in good faith, and with regularity, for the production of income for livelihood and is not a ...

Solution Summary

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