Tax Memorandum

TAX MEMORANDUM TO: Dr. green FROM: DATE: November 15, 2010 RE: dramatic play Activities Issue & Facts Dr. Green is a practicing physician in wampum who, as an zealous blackjack and slot machine player, travels to Las Vegas every other pass to gamble. He would like to know what criteria atomic number 18 used to limit whether his frolic activities constitute a share or phone line for federal income taxation purposes and whether or non his play activities  particularize for stack or business status. If Dr. Greens childs play activities do not qualify as a trade or business, cannister he deduct his gambling-related travel and dwell expenses a strivest his gambling net profit? Finally, assume Dr. Greens wife, Mrs. Green, gambles to the same extent 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 t ransactions and use his going away to offset her winnings? relevant Case Law, Code & Regulations The IRS has counsel regarding gambling winning and loss associated with federal taxation. Under exit 419, gambling winnings are experty taxable and essential be account on tax return. Tax remunerator must(prenominal) file organize 1040 and include all of his or her winnings. dramatic play income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes exchange winnings and in addition the fair market observe of prizes such as cars and trips. all told gambling winnings must be reported, including winnings` that are not result to withholding. In addition, taxpayer whitethorn be compulsory to pay an estimated tax on your gambling winnings. Also taxpayer may deduct gambling losses only if tax payer itemizes deductions. Claim gambling losses as a mixed deduction that is not subject to the 2% limit on form 1040, Schedul e A. And its measuring 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 ask to get a full essay, order it on our website: OrderCustomPaper.com

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