Gamblers couldn’t deduct losse

November 29, 2016





Gamblers couldn’t deduct losses. “Professional” gamblers can deduct losses equal to their winnings, but the burden of proving the deduction is on them. To be professional, a taxpayer must be engaged in gambling with the intent to make a profit. In one case, the U.S. Tax Court denied “house players” (a married couple) the right to deduct losses against $16,800 of winnings because they didn’t keep the required records of amounts spent. That left the court with no basis for estimating the taxpayers’ gambling losses under the “Cohan rule.” (TC Summary Opinion 2016-73)