Is a full-time gambler engaged in a “trade or business”?
1. Test of whether or not someone is in a trade or business: is the activity pursued
a. full time?
b. in good faith?
c. w/ regularity?
d. for a livelihood?
e. and not as a mere hobby?
2. in this case, 165 allows for a deduction for “wagering losses” which are limited to the amount of “wagering gains,” however, 62 says that these are below the line and, t/f subject to be cut, whereas if they are adjudicated to be expenses incurred in a trade or business, then they are above the line.
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