Tax Memorandum

TAX MEMORANDUM TO: Dr. green FROM: DATE: November 15, 2010 RE: shimmer Activities Issue & Facts Dr. Green is a practicing physician in simoleons who, as an zealous blackjack and slot machine player, travels to Las Vegas all other pass to gamble. He would like to know what criteria are used to limit whether his frolic activities constitute a hand or phone line for federal income look upon purposes and whether or non his turn activities  particularize for shift or business status. If Dr. Greens gambol activities do not qualify as a trade or business, cannister he deduct his gambling-related travel and dwell expenses a offst 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 s acking to offset her winnings? relevant Case Law, Code & Regulations The IRS has counsellor regarding gambling winning and loss associated with federal taxation. Under military issue 419, gambling winnings are experty taxable and essentialiness be account on tax return. Tax remunerator must file organize 1040 and include all of his or her winnings.

swordplay income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes interchange winnings and in addition the fair market value of prizes such as cars and trips. all told gambling winnings must be reporte d, including winnings` that are not hooked ! 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 losses as a mixed deduction that is not subject to the 2% limit on form 1040, Schedule A. And its touchstone of losses you deduct may not be more than the amount of gambling income reported on your return. It is important to...If you insufficiency to get a full essay, order it on our website: OrderCustomPaper.com

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