Tax Memo - Gambling Activities

Tax Memorandum TO: Mr. Green FROM: DATE: Week 4 RE: Gambling Activities set off One and applicable Case Law, statute & Regulations It has come to our management that you requested to shaft which criteria is used to determine if your drama activities bring about a subscribe to or commercial enterprise status for the guinea pig income tax purposes and if we think your swordplay activities qualify for trade or product line status. The case of Commissioner v. Groetzinger, 480 U.S. 23 1987 is approriate for deciding if the romp proceeding has trade or business status. The Supreme Court peach that some factors had to be considered by the commissioner in determining if a taxpayers gambling activities constitute trade or business status. Treasury Regulation 1.183-2 (a) listed these factors as taxpayers gambling system: done in good faith for profit making reasons, done in full-time basis or fullest proceeding if he has employment elsewhere, maintain ing records of daily wagers, net profit and losses, the gambling action at law is solely for his own discover yet he does not function as a bookmaker, the extent the he improves teaching of gambling enterprise and taxpayer claims deductions associated with the conduct of a trade or business for gambling expenses. ingredient 62(a) (1) of the Internal Revenue label shows the deductions permitted and they include the deductions that are as a result of the trade or business activity. Mr. Green, you perk up an interest in gambling every weekend, thus you are a frequent gambler plainly you do not do it for profit making purpose. Furthermore, you have a medical student job in Chicago, so gambling is not your profession. Therefore, get around of your gambling activities qualifies for trade or business status but others do not. Issue ii and Applicable Case Law, Code & Regulations The issue under reach is if you can deduct your gambling-related choke and lodging expenses against your gambling winn! ings even though your gambling activities did not...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper