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.
We have located some similar legal questions and legal question categories. Check out these challenging questions that askquestions about Tax Law Cases and are similar to What does the case Commissioner v. Groetzinger (419) say?. Also, we have included a list of some of our more popular legal question categories. These categories are based on what everyone is asking and answering.