|
 The Las Vegas Review-Journal reported some good news for professional gamblers in the U.S. According to the paper a recent tax ruling will now allow professional gamblers to deduct business expenses for things like travel and fees for entering tournaments. The ruling has proven to be a major victory for gamblers as it not only legitimizes gambling as a profession but could save some gamblers thousands of dollars a year.
The U.S. Tax Court ruling was made after Robert Mayo, a professional gambler from California, deducted $10,968 in expenses for things like travel and fees for race handicapping information on his taxes. Up until the recent ruling, the U.S. Tax Court only equated expenses related to a gambling trip with gambling losses the court however decided that Mayo's expenses were not a wagering loss, but business expenses that contributed to a net operating loss for the year.
"Mayo is an important case, particularly because it's a full decision of the Tax Court," Roger McEowen, a law professor at Iowa State University's Center for Agricultural Law and Taxation, wrote in a January newsletter. "It also is important because it allows professional gamblers to utilize negative operating losses arising from their gambling business."
Judy Patterson, the senior vice president and executive director of American Gaming Association in Washington D.C. warns however that while this is a victory for professional gamblers it will not affect very many gamblers. "To qualify, gambling really has to be a full-time activity that is the person's principal source of livelihood," Patterson said. "It's a pretty high standard that few will be able to meet."
Tax law experts say that the IRS will require players to prove that they are a professional gambler by providing proof of participation over a several-year period showing both profits and losses.
"Although the law does not define a gambling trade or business, the IRS looks to all the facts and circumstances to make a determination on a case-by-case basis," said IRS spokesman Raphael Tulino.
While the number of gamblers affected by the ruling may be smaller than many in the industry would like those who can claim their businesses expenses should be overjoyed at the ruling.
As always, stay tuned to Casinofan for more news and updates.
|
Subscribe to this comment's feed
