Tax Memorandum

In Tschetschot v. Commissioner, 93 TCM 914 (2007), the tax court ruled that taxpayer’s losses from participating in tournament poker were limited to the amount of her winnings. The court held that tournament poker is, despite its differences from other types of poker, essentially a wagering activity and therefore should not be treated differently from other forms of gambling for tax purposes. The court also rejected the taxpayer’s equal protection argument to treat tournament poker as sports, on the basis of the policy decisions of the congress to treat business based on wagering activities differently.

For years, Bachmann keeps coming to the casino until she got hooked and became a compulsive gambler. She gambled every money she has up to the point of losing everything. During those time, Bachmann had no idea that someday she would become one of the most important examples of whether people should bear responsibility for their habits. Bachmann’s problem with gambling slowly loses control over how much time and money she spent gambling. Although she thinks she is in control and she was aware of the bad effect it may cause, Bachmann continued gambling without seeking help. Other times she tried to cut down or stop but, many times she failed. She keeps hoping a big win will end her problems. She feared that her loved ones will find them out that drives her deeper into hiding and further into debt. She felt anxious and upset whenever she tried to change. I would also like to point out that Harrah’s Casino is partly to blame here. Their participation in Bachmann’s addiction is something to consider and look upon. They shower her with gifts such as: “free coupons, free buffets… free trip to Lake Tahoe with a suite, and tickets to Eagles concert” (Duhigg, pp. 247, 261) in which according to Bachmann is hard to resist. According to Bachmann’s lawyer, “she should not be held culpable because she had been reacting automatically to temptations that Harrah’s Casino put in front of her. Once the offers started rolling in,

Gambling is no crime, so then he is not showing us a negative thing. If

2. This would create jobs. Both for the people like me that played for a living, and for people that would work for the companies that offer online gaming. These would be real jobs, and every one of these jobs would offer real taxable income.

The Internal Revenue Code (IRC) is the supreme source of income tax law. When trying to resolve an income tax question, a tax practitioner will look to other sources in addition to the IRC. For example, the tax practitioner may consult IRC regulations,

Allen received something of value from the casino. Under the broad concept of income, the airfare and hotel accommodations would be considered income. However, Allen could argue that the income should be matched with his $25,000 in gambling losses on the trip, and when the income and losses are combined, the net effect is an economic loss

Once a gain or loss is recognized, a taxpayer must determine how the recognized gain or loss affects the taxpayer’s tax liability. The character depends on a combination of two factors: purpose or use of the asset and holding period. The purpose or use of the asset is important because the law does not treat all assets equally. The general use categories are: (1) trade or business, (2) for the production of income (rental activities), (3) investment, and (4) personal. Based on these criteria, we can categorize an asset into one of three groups: (1) ordinary, (2) capital, or (3) section 1231. Characterizing the gain or loss is important because all gains and losses are not equal. Ordinary gains and losses are taxed at ordinary income rates, regardless of the holding

Conclusion: Jane has a business. If time and effort put into the activity is intended to make a profit, this is considered a business. Business versus hobby is important because taxpayers who incorrectly report losses from hobby activities can be subject to additional taxes, interest and penalties in an audit (http://www.irsvideos.gov/Professional/HobbyBusiness)

was as much a part of a miner?s possessions as was the pick with which he

This revenue procedure applies to a qualifying small business taxpayer as defined in section 5.01 with average gross receipts of $10,000,000 or less that is not

In the case of Cohan vs. Commissioner, Cohan incurred expenses for traveling and entertainment, but he didn’t have receipts to substantiate them. He proved his deductions by testimony, and the court believed him. If the IRS is convinced by oral or written statements or other supporting evidence, and if you can approximate the expenses reasonably, you may be allowed to deduct the expenses associated with travel and meal even though you have failed to keep the records. However, you should remember that the Cohan Rule has been applied very narrowly, and doesn’t always work, especially for charitable deductions.

Robert Kiyosaki once said, “Successful people take big risks knowing they might fall hard but they might succeed more than they ever dreamed.” This man is a billionaire that hit the jackpot, while gambling. He now owns eleven different businesses and he is worth over eighty million dollars. If someone could learn how to astute, they could live like him too. The articles, The Legalized Gambling Debate, Sports Betting Should be Legal, and Should Sports Gambling be Legal?, all attribute thought to this suggestion. Gambling is a feasible business as it provides revenue, sponsors education, and inspires gamblers.

The debate on whether or not gambling should be regarded acceptable from a moral point of view has been ongoing for quite a while. However, one aspect of gambling that has been overlooked frequently has got to do with individual freedom. Ordinarily, people should have a right to choose whether or not to engage in gambling. Indeed, the freedom accorded to individuals to engage in activities of their choice as long as they do not interfere with the freedom of others can be regarded one of the key determinants of a truly free society.

There are several concerns regarding the ethics of gambling whether in an online setting or in a public setting. Gambling has many benefits for both gamblers and casinos, but it’s crucial to acknowledge the psychological repercussions of gambling as it isn’t always just “harmless fun.” We can consider the negative and positive implications of gambling on non-gamblers as well. However, how would ethical theories and perspectives differ in their approach to the effects of gambling? When people think of gambling, they usually see flashing Vegas casinos and large sums of cash. The gambling arena is much larger just as the significance of the effects gambling has on the casinos and people involved. Gambling addiction is a very prevalent factor

Research suggests that for every problem gambler there are 10 to 17 people around him that will be negatively affected.[iv] Excessive spending on gambling can have serious consequences for the gambler's family. For the most part, bills and necessary expenses are not paid and the burden will fall onto the spouse or children.[v] There can also be a negative impact on the gamblers' work environment. If the gambler is not focused or absent from work, he may be fired which could add to his financial difficulty that started with his gambling habit. Crime is sometimes used to support gambling habits after bank accounts are exhausted.