Tax Memorandum

TAX MEMORANDUM TO: Dr. green FROM: DATE: November 15, 2010 RE: caper Activities Issue & Facts Dr. Green is a practicing physician in wampum who, as an zealous blackjack and slot machine player, travels to Las Vegas both other pass to gamble. He would like to know what criteria argon used to limit whether his frolic activities constitute a hatful or phone line for federal income evaluate purposes and whether or non his playing period activities  particularize for trade wind or business status. If Dr. Greens romp activities do not qualify as a trade or business, cannister he deduct his gambling-related travel and populate expenses a throwst his gambling net profit? Finally, assume Dr. Greens wife, Mrs. Green, gambles to the same conclusion 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 transa ctions and use his divergence to offset her winnings? relevant Case Law, Code & Regulations The IRS has way regarding gambling winning and loss associated with federal taxation. Under radical 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.

romp income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes money winnings and in addition the fair market look on of prizes such as cars and trips. all told gambling winnings must be repor ted, including winnings` that are not root ! word 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 totality of losses you deduct may not be more than than the amount of gambling income reported on your return. It is important to...If you compulsion to get a full essay, order it on our website: OrderCustomPaper.com

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