Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of...

Taxation of the Gambler

Exhibits IRS Form 1040 US Individual Income Tax Return IRS Form 1040 US Individual Income Tax Return Instructions Pages 10 11 and 29 IRS Schedule A Itemized Deductions IRS Schedule A Itemized Deductions Instructions Page A-11 IRS Schedule C Profit or Loss From Business (Sole Proprietorship) IRS Form W-2G Certain Gambling Winnings IRS Form 5754 Statement by Person(s) Receiving Gambling Winnings IRS Form 1099-MISC Miscellaneous Income FinCEN Form 102 Suspicious Activity Report by Casinos and Card Clubs IRS Revenue Procedure 77-29 IRS Chief Counsel Advice Memorandum 2008-011 Sample WinLoss Statement (Eldorado Casino Shreveport LA) Sample WinLoss Statement (Golden Nugget Las Vegas NV) Sample WinLoss Statement (The Venetian Casino Las Vegas NV) Sample CASHOUT TICKET (Horseshoe Casino Bossier City LA)

L A B E L

H E R E

Form 1040 Department of the TreasurymdashInternal Revenue Service

US Individual Income Tax Return 2009 (99) IRS Use OnlymdashDo not write or staple in this space

Label (See instructions on page 14)

Use the IRS label

Otherwise please print or type

For the year Jan 1ndashDec 31 2009 or other tax year beginning 2009 ending 20 OMB No 1545-0074

Your first name and initial Last name Your social security number

If a joint return spousersquos first name and initial Last name Spousersquos social security number

Home address (number and street) If you have a PO box see page 14 Apt no para

You must enter your SSN(s) above para

City town or post office state and ZIP code If you have a foreign address see page 14 Checking a box below will not change your tax or refund

Presidential Election Campaign copy Check here if you or your spouse if filing jointly want $3 to go to this fund (see page 14) copy You Spouse

Filing Status

Check only one box

1 Single

2 Married filing jointly (even if only one had income)

3 Married filing separately Enter spousersquos SSN above and full name here copy

4 Head of household (with qualifying person) (See page 15) If the

qualifying person is a child but not your dependent enter this

childrsquos name here copy

5 Qualifying widow(er) with dependent child (see page 16)

Exemptions

If more than four dependents see page 17 and check here copy

6a Yourself If someone can claim you as a dependent do not check box 6a

b Spouse Boxes checked on 6a and 6b

c Dependents

(1) First name Last name

(2) Dependentrsquos social security number

(3) Dependentrsquos relationship to you

(4) if qualifying child for child tax

credit (see page 17)

No of children on 6c who lived with you did not live with you due to divorce or separation (see page 18)

Dependents on 6c not entered above

d Total number of exemptions claimed Add numbers on lines above copy

Income

Attach Form(s) W-2 here Also attach Forms W-2G and 1099-R if tax was withheld

If you did not get a W-2 see page 22

Enclose but do not attach any payment Also please use Form 1040-V

7 Wages salaries tips etc Attach Form(s) W-2 7

8a Taxable interest Attach Schedule B if required 8a

b Tax-exempt interest Do not include on line 8a 8b

9 a Ordinary dividends Attach Schedule B if required 9a

b Qualified dividends (see page 22) 9b

10 Taxable refunds credits or offsets of state and local income taxes (see page 23) 10

11 Alimony received 11

12 Business income or (loss) Attach Schedule C or C-EZ 12

13 Capital gain or (loss) Attach Schedule D if required If not required check here copy 13

14 Other gains or (losses) Attach Form 4797 14

15 a IRA distributions 15a b Taxable amount (see page 24) 15b

16 a Pensions and annuities 16a b Taxable amount (see page 25) 16b

17 Rental real estate royalties partnerships S corporations trusts etc Attach Schedule E 17

18 Farm income or (loss) Attach Schedule F 18

19 Unemployment compensation in excess of $2400 per recipient (see page 27) 19

20 a Social security benefits 20a b Taxable amount (see page 27) 20b

21 Other income List type and amount (see page 29) 21 22 Add the amounts in the far right column for lines 7 through 21 This is your total income copy 22

Adjusted Gross Income

23 Educator expenses (see page 29) 23

24 Certain business expenses of reservists performing artists and fee-basis government officials Attach Form 2106 or 2106-EZ 24

25 Health savings account deduction Attach Form 8889 25

26 Moving expenses Attach Form 3903 26

27 One-half of self-employment tax Attach Schedule SE 27

28 Self-employed SEP SIMPLE and qualified plans 28

29 Self-employed health insurance deduction (see page 30) 29

30 Penalty on early withdrawal of savings 30

31 a Alimony paid b Recipientrsquos SSN copy 31a

32 IRA deduction (see page 31) 32

33 Student loan interest deduction (see page 34) 33

34 Tuition and fees deduction Attach Form 8917 34

35 Domestic production activities deduction Attach Form 8903 35

36 Add lines 23 through 31a and 32 through 35 36 37 Subtract line 36 from line 22 This is your adjusted gross income copy 37

For Disclosure Privacy Act and Paperwork Reduction Act Notice see page 97 Cat No 11320B Form 1040 (2009)

Form 1040 (2009) Page 2

Tax and Credits

38 Amount from line 37 (adjusted gross income) 38

39a Check if You were born before January 2 1945 Blind

Spouse was born before January 2 1945 Blind Total boxes checked copy 39a

b If your spouse itemizes on a separate return or you were a dual-status alien see page 35 and check here copy 39b

40 a Itemized deductions (from Schedule A) or your standard deduction (see left margin) 40a

b If you are increasing your standard deduction by certain real estate taxes new motor vehicle taxes or a net disaster loss attach Schedule L and check here (see page 35) copy 40b

Standard Deduction formdash People who check any box on line 39a 39b or 40b or who can be claimed as a dependent see page 35 All others Single or Married filing separately $5700 Married filing jointly or Qualifying widow(er) $11400 Head of household $8350

41 Subtract line 40a from line 38 41

42 Exemptions If line 38 is $125100 or less and you did not provide housing to a Midwestern displaced individual multiply $3650 by the number on line 6d Otherwise see page 37 42

43 Taxable income Subtract line 42 from line 41 If line 42 is more than line 41 enter -0- 43

44 Tax (see page 37) Check if any tax is from a Form(s) 8814 b Form 4972 44

45 Alternative minimum tax (see page 40) Attach Form 6251 45

46 Add lines 44 and 45 copy 46

47 Foreign tax credit Attach Form 1116 if required 47

48 Credit for child and dependent care expenses Attach Form 2441 48

49 Education credits from Form 8863 line 29 49

50 Retirement savings contributions credit Attach Form 8880 50

51 Child tax credit (see page 42) 51

52 Credits from Form a 8396 b 8839 c 5695 52

53 Other credits from Form a 3800 b 8801 c 53

54 Add lines 47 through 53 These are your total credits 5455 Subtract line 54 from line 46 If line 54 is more than line 46 enter -0- copy 55

Other Taxes

56 Self-employment tax Attach Schedule SE 56

57 Unreported social security and Medicare tax from Form a 4137 b 8919 57

58 Additional tax on IRAs other qualified retirement plans etc Attach Form 5329 if required 58

59 Additional taxes a AEIC payments b Household employment taxes Attach Schedule H 59

60 Add lines 55 through 59 This is your total tax copy 60

Payments 61 Federal income tax withheld from Forms W-2 and 1099 61

62 2009 estimated tax payments and amount applied from 2008 return 62

63 Making work pay and government retiree credits Attach Schedule M 63 If you have a qualifying child attach Schedule EIC

64a Earned income credit (EIC) 64a

b Nontaxable combat pay election 64b

65 Additional child tax credit Attach Form 8812 65

66 Refundable education credit from Form 8863 line 16 66

67 First-time homebuyer credit Attach Form 5405 67

68 Amount paid with request for extension to file (see page 72) 68

69 Excess social security and tier 1 RRTA tax withheld (see page 72) 69

70 Credits from Form a 2439 b 4136 c 8801 d 8885 70 71 Add lines 61 62 63 64a and 65 through 70 These are your total payments copy 71

Refund Direct deposit See page 73 and fill in 73b 73c and 73d or Form 8888

72 If line 71 is more than line 60 subtract line 60 from line 71 This is the amount you overpaid 72

73a Amount of line 72 you want refunded to you If Form 8888 is attached check here copy 73a copy

copy

b Routing number copy c Type Checking Savings

d Account number

74 Amount of line 72 you want applied to your 2010 estimated tax copy 74 Amount You Owe

75 Amount you owe Subtract line 71 from line 60 For details on how to pay see page 74 copy 75

76 Estimated tax penalty (see page 74) 76

Third Party Designee

Do you want to allow another person to discuss this return with the IRS (see page 75) Yes Complete the following No

Designeersquos name copy

Phone no copy

Personal identification number (PIN) copy

Sign Here Joint return See page 15 Keep a copy for your records

Under penalties of perjury I declare that I have examined this return and accompanying schedules and statements and to the best of my knowledge and belief they are true correct and complete Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge

Your signature Date Your occupation Daytime phone number

Spousersquos signature If a joint return both must sign copy Date Spousersquos occupation

Paid Preparerrsquos Use Only

Preparerrsquos signature copy Date

Check if self-employed

Preparerrsquos SSN or PTIN

Firmrsquos name (or yours if self-employed) address and ZIP code

copy EIN

Phone no

Form 1040 (2009)

Page 10 of 104 of Instructions 1040 1524 - 16-OCT-2009

The type and rule above prints on all proofs including departmental reproduction proofs MUST be removed before printing

Where To Report Certain Items From 2009 Forms W-2 1098 and 1099

IRS e-file takes the guesswork out of preparing your return You may also be eligible to use Free File to file your federal income taxreturn Visit wwwirsgovefile for details

If any federal income tax withheld is shown on these forms include the tax withheld on Form 1040 line 61 If you itemize your deductions and anystate or local income tax withheld is shown on these forms include the tax withheld on Schedule A line 5 unless you elect to deduct state and localgeneral sales taxes

Form Item and Box in Which It Should Appear Where To Report if Filing Form 1040

W-2 Wages tips other compensation (box 1) Form 1040 line 7Allocated tips (box 8) See Wages Salaries Tips etc on page 21Advance EIC payment (box 9) Form 1040 line 59Dependent care benefits (box 10) Form 2441 Part IIIAdoption benefits (box 12 code T) Form 8839 line 22Employer contributions to an Archer Form 8853 line 1

MSA (box 12 code R)Employer contributions to a health savings account Form 8889 line 9

(box 12 code W)

W-2G Gambling winnings (box 1) Form 1040 line 21 (Schedule C or C-EZ for professional gamblers)

1098 Mortgage interest (box 1) Schedule A line 10Points (box 2) Refund of overpaid interest (box 3) Form 1040 line 21 but first see the instructions on Form 1098Mortgage insurance premiums (box 4) See the instructions for Schedule A line 13

1098-C Contributions of motor vehicles boats and Schedule A line 17airplanes

1098-E Student loan interest (box 1) See the instructions for Form 1040 line 33 on page 34

1098-T Qualified tuition and related expenses See the instructions for Form 1040 line 34 on page 35 or Form 1040(box 1) line 49 on page 40 but first see the instructions on Form 1098-T

1099-A Acquisition or abandonment of secured property See Pub 4681

1099-B Stocks bonds etc (box 2) See the instructions on Form 1099-BBartering (box 3) See Pub 525Aggregate profit or (loss) (box 11) Form 6781 line 1

1099-C Canceled debt (box 2) See Pub 4681

1099-DIV Total ordinary dividends (box 1a) Form 1040 line 9aQualified dividends (box 1b) See the instructions for Form 1040 line 9b on page 22Total capital gain distributions (box 2a) Form 1040 line 13 or if required Schedule D line 13Unrecaptured section 1250 gain (box 2b) See the instructions for Schedule D line 19 that begin on page D-8Section 1202 gain (box 2c) See Exclusion of Gain on Qualified Small Business (QSB) Stock in

the instructions for Schedule D on page D-4Collectibles (28) gain (box 2d) See the instructions for Schedule D line 18 on page D-8Nondividend distributions (box 3) See the instructions for Form 1040 line 9a on page 22Investment expenses (box 5) Schedule A line 23Foreign tax paid (box 6) Form 1040 line 47 or Schedule A line 8 But first see the

instructions for line 47 on page 40

1099-G Unemployment compensation (box 1) See the instructions for Form 1040 line 19 on page 27State or local income tax refunds credits or See the instructions for Form 1040 line 10 that begin on page 23 If

offsets (box 2) box 8 on Form 1099-G is checked see the box 8 instructionsATAA payments (box 5) Form 1040 line 21Taxable grants (box 6) Form 1040 line 21Agriculture payments (box 7) See the Instructions for Schedule F or Pub 225Market gain (box 9) See the Instructions for Schedule F

If the item relates to an activity for which you are required to file Schedule C C-EZ E or F or Form 4835 report the taxable or deductible amount allocable to theactivity on that schedule or form instead

- 10 -

1099-INT Interest income (box 1) See the instructions for Form 1040 line 8a on page 22Early withdrawal penalty (box 2) Form 1040 line 30Interest on US savings bonds and Treasury See the instructions for Form 1040 line 8a on page 22

obligations (box 3)Investment expenses (box 5) Schedule A line 23Foreign tax paid (box 6) Form 1040 line 47 or Schedule A line 8 But first see the

instructions for line 47 on page 40Tax-exempt interest (box 8) Form 1040 line 8bSpecified private activity bond interest (box 9) Form 6251 line 13

1099-LTC Long-term care and accelerated death benefits See Pub 525 and the Instructions for Form 8853

1099-MISC Rents (box 1) See the Instructions for Schedule ERoyalties (box 2) Schedule E line 4 (for timber coal and iron ore royalties see

Pub 544)Other income (box 3) Form 1040 line 21Nonemployee compensation (box 7) Schedule C C-EZ or F But if you were not self-employed see the

instructions on Form 1099-MISCExcess golden parachute payments (box 13) See the instructions for Form 1040 line 60 on page 46Other (boxes 5 6 8 9 10 and 15b) See the instructions on Form 1099-MISC

1099-OID Original issue discount (box 1) See the instructions on Form 1099-OIDOther periodic interest (box 2)Early withdrawal penalty (box 3) Form 1040 line 30Original issue discount on US Treasury See the instructions on Form 1099-OID

obligations (box 6)Investment expenses (box 7) Schedule A line 23

1099-PATR Patronage dividends and other distributions from a Schedule C C-EZ or F or Form 4835 but first see the instructions oncooperative (boxes 1 2 3 and 5) Form 1099-PATR

Domestic production activities deduction (box 6) Form 8903 line 21Credits (boxes 7 8 and 10) See the instructions on Form 1099-PATRPatronrsquos AMT adjustment (box 9) Form 6251 line 28Deduction for small refiner capital costs or Schedule C C-EZ or F

qualified refinery property (box 10)

1099-Q Qualified education program payments See the instructions for Form 1040 line 21 on page 29

1099-R Distributions from IRAs See the instructions for Form 1040 lines 15a and 15b that begin onpage 24

Distributions from pensions annuities etc See the instructions for Form 1040 lines 16a and 16b that begin onpage 25

Capital gain (box 3) See the instructions on Form 1099-R

1099-S Gross proceeds from real estate transactions (box Form 4797 Form 6252 or Schedule D But if the property was your2) home see the Instructions for Schedule D to find out if you must

report the sale or exchange Report an exchange of like-kindproperty on Form 8824 even if no gross proceeds are reported onForm 1099-S

Buyerrsquos part of real estate tax (box 5) See the instructions for Schedule A line 6 on page A-5

1099-SA Distributions from health savings accounts (HSAs) Form 8889 line 14aDistributions from MSAs Form 8853

This includes distributions from Roth SEP and SIMPLE IRAs This includes distributions from Archer and Medicare Advantage MSAs

- 11 -

Form 1040mdashLines 21 and 23

Attach Form(s) W-2G to bull Any Pay-for-Performance SuccessForm 1040 if any federal in- Payments that reduce the principal balanceLine 21come tax was withheld of your home mortgage under the Home

TIPOther Income Affordable Modification Program

bull Jury duty pay Also see the instruc- bull Life insurance proceeds received be-Do not report on this line anycause of someonersquos death (other than fromtions for line 36 on page 35income from self-employmentcertain employer-owned life insurance con-or fees received as a notary bull Alaska Permanent Fund dividendsCAUTION

tracts)public Instead you must use bull Alternative trade adjustment assis-

Schedule C C-EZ or F even if you do not bull Gifts and bequests However if youtance (ATAA) payments These paymentshave any business expenses Also do not received a gift or bequest from a foreignshould be shown in box 5 of Form 1099-Greport on line 21 any nonemployee com- person of more than $14139 you maybull Reimbursements or other amounts re-pensation shown on Form 1099-MISC In- have to report information about it on Form

ceived for items deducted in an earlier yearstead see the chart on page 11 to find out 3520 Part IV See the Instructions forsuch as medical expenses real estate taxeswhere to report that income Form 3520general sales taxes or home mortgage in-

Taxable income Use line 21 to report any terest See Recoveries in Pub 525 for de-taxable income not reported elsewhere on tails on how to figure the amount to reportyour return or other schedules See the ex- bull Income from the rental of personalamples below List the type and amount of Adjusted Gross

property if you engaged in the rental forincome If necessary show the required in-profit but were not in the business of rent- Incomeformation on an attached statement Foring such property Also see the instructionsmore details see Miscellaneous Income infor line 36 on page 35Pub 525

bull Income from an activity not engaged Line 23Examples of income to report on line 21in for profit See Pub 535include the following Educator Expensesbull Loss on certain corrective distribu-bull Taxable distributions from a Cover-tions of excess deferrals See Retirement If you were an eligible educator in 2009dell education savings account (ESA) or a

you can deduct on line 23 up to $250 ofPlan Contributions in Pub 525qualified tuition program (QTP) Distribu-qualified expenses you paid in 2009 If youbull Dividends on insurance policies iftions from these accounts may be taxable ifand your spouse are filing jointly and boththey exceed the total of all net premiums(a) they are more than the qualified higherof you were eligible educators the maxi-you paid for the contracteducation expenses of the designated bene-mum deduction is $500 However neitherficiary in 2009 and (b) they were not in- bull Recapture of a charitable contribution spouse can deduct more than $250 of his orcluded in a qualified rollover See Pub 970 deduction relating to the contribution of a her qualified expenses on line 23 You mayNontaxable distributions from these ac- fractional interest in tangible personal be able to deduct expenses that are morecounts including rollovers do not have to property See Fractional Interest In Tangi- than the $250 (or $500) limit on Schedulebe reported on Form 1040 ble Personal Property in Pub 526 Interest A line 21 An eligible educator is a kinder-

and an additional 10 tax apply to theYou may have to pay an addi- garten through grade 12 teacher instructoramount of the recapture See the instruc-tional tax if you received a tax- counselor principal or aide who worked intions for line 60 on page 46able distribution from a a school for at least 900 hours during aCAUTION

Coverdell ESA or a QTP See school yearbull Recapture of a charitable contribution

the Instructions for Form 5329 deduction if the charitable organization dis-Qualified expenses include ordinary andposes of the donated property within 3bull Taxable distributions from a health necessary expenses paid in connection withyears of the contribution See Recapture ifsavings account (HSA) or an Archer MSA books supplies equipment (includingno exempt use in Pub 526Distributions from these accounts may be computer equipment software and serv-

bull Canceled debts These amounts maytaxable if (a) they are more than the un- ices) and other materials used in the class-be shown in box 2 of Form 1099-C How-reimbursed qualified medical expenses of room An ordinary expense is one that isever part or all of your income from thethe account beneficiary or account holder common and accepted in your educationalcancellation of debt may be nontaxablein 2009 and (b) they were not included in a field A necessary expense is one that isSee Pub 4681 or go to wwwirsgov andqualified rollover See Pub 969 helpful and appropriate for your professionenter ldquocanceled debtrdquo or ldquoforeclosurerdquo in as an educator An expense does not haveYou may have to pay an addi- the search box to be required to be considered necessarytional tax if you received a tax-

able distribution from an HSA Qualified expenses do not include ex-Nontaxable income Do not report anyCAUTION

or an Archer MSA See the In- penses for home schooling or fornontaxable income on line 21 Examples ofstructions for Form 8889 for HSAs or the nonathletic supplies for courses in health ornontaxable income include the followingInstructions for Form 8853 for Archer physical educationbull Child supportMSAs

You must reduce your qualified ex-bull Economic recovery payments of $250bull Amounts deemed to be income from penses by the following amountsan HSA because you did not remain an made to certain recipients of social securitybull Excludable US series EE and I sav-eligible individual during the testing pe- benefits supplemental security income

ings bond interest from Form 8815riod See Form 8889 Part III railroad retirement benefits or certain vet-bull Nontaxable qualified tuition programerans disability compensation or pensionbull Prizes and awards

earnings or distributionsbenefitsbull Gambling winnings including lotter-bull Any nontaxable distribution of Cover-bull Vouchers or payments made for suchies raffles a lump-sum payment from the

dell education savings account earningsvouchers of $3500 or $4500 you receivedsale of a right to receive future lottery pay-under the CARS ldquocash for clunkersrdquo pro-ments etc For details on gambling losses bull Any reimbursements you received forgram to buy or lease a new fuel-efficientsee the instructions for Schedule A line 28 these expenses that were not reported to

on page A-11 automobile you in box 1 of your Form W-2

- 29 - Need more information or forms See page 96

SCHEDULE A (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Itemized Deductions

copy Attach to Form 1040 copy See Instructions for Schedule A (Form 1040)

OMB No 1545-0074

2009Attachment Sequence No 07

Name(s) shown on Form 1040 Your social security number

Medical and Dental Expenses

Caution Do not include expenses reimbursed or paid by others 1 Medical and dental expenses (see page A-1) 1 2 Enter amount from Form 1040 line 38 2 3 Multiply line 2 by 75 (075) 3 4 Subtract line 3 from line 1 If line 3 is more than line 1 enter -0- 4

Taxes You Paid

(See page A-2)

5 State and local (check only one box) a Income taxes orb General sales taxes

5

6 Real estate taxes (see page A-5) 6 7 New motor vehicle taxes from line 11 of the worksheet on

back Skip this line if you checked box 5b 7 8 Other taxes List type and amount copy

8 9 Add lines 5 through 8 9

Interest You Paid (See page A-6) Note Personal interest is not deductible

10 Home mortgage interest and points reported to you on Form 1098 10

11 Home mortgage interest not reported to you on Form 1098 If paid to the person from whom you bought the home see page A-7 and show that personrsquos name identifying no and address copy

11 12 Points not reported to you on Form 1098 See page A-7 for

special rules 12 13 Qualified mortgage insurance premiums (see page A-7) 13 14 Investment interest Attach Form 4952 if required (See page A-8) 14 15 Add lines 10 through 14 15

Gifts to Charity If you made a gift and got a benefit for it see page A-8

16 Gifts by cash or check If you made any gift of $250 or more see page A-8 16

17 Other than by cash or check If any gift of $250 or more see page A-8 You must attach Form 8283 if over $500 17

18 Carryover from prior year 1819 Add lines 16 through 18 19

Casualty and Theft Losses 20 Casualty or theft loss(es) Attach Form 4684 (See page A-10) 20 Job Expenses and Certain Miscellaneous Deductions

(See page A-10)

21 Unreimbursed employee expensesmdashjob travel union dues job education etc Attach Form 2106 or 2106-EZ if required (See page A-10) copy 21

22 Tax preparation fees 22 23 Other expensesmdashinvestment safe deposit box etc List type

and amount copy23

24 Add lines 21 through 23 24 25 Enter amount from Form 1040 line 38 25 26 Multiply line 25 by 2 (02) 26 27 Subtract line 26 from line 24 If line 26 is more than line 24 enter -0- 27

Other Miscellaneous Deductions

28 Othermdashfrom list on page A-11 List type and amount copy

28 Total Itemized Deductions

29 Is Form 1040 line 38 over $166800 (over $83400 if married filing separately) No Your deduction is not limited Add the amounts in the far right column for

lines 4 through 28 Also enter this amount on Form 1040 line 40a Yes Your deduction may be limited See page A-11 for the amount to enter

copy 29

30 If you elect to itemize deductions even though they are less than your standard deduction check here copy

For Paperwork Reduction Act Notice see Form 1040 instructions Cat No 17145C Schedule A (Form 1040) 2009

Schedule A (Form 1040) 2009 Page 2

Worksheet for Line 7mdash New motor vehicle taxes

Use this worksheet to figure the amount to enter on line 7

(Keep a copy for your records)

Before you begin

See the instructions for line 7 on page A-6

1 Enter the state and local sales and excise taxes you paid in 2009 for the purchase of any new motor vehicle(s) after February 16 2009 (see page A-6) 1

2 Enter the purchase price (before taxes) of the new motor vehicle(s) 2

3 Is the amount on line 2 more than $49500No Enter the amount from line 1

3 Yes Figure the portion of the tax from

line 1 that is attributable to the first $49500 of the purchase price of each new motor vehicle and enter it here (see page A-6)

4 Enter the amount from Form 1040 line 38 4

5 Enter the total of anymdash

Amounts from Form 2555 lines 45 and 50 Form 2555-EZ line 18 and Form 4563 line 15 and Exclusion of income from Puerto Rico

5

6 Add lines 4 and 5 6

7 Enter $125000 ($250000 if married filing jointly) 7

8 Is the amount on line 6 more than the amount on line 7

No Enter the amount from line 3 above on Schedule A line 7 Do not complete the rest of this worksheet

Yes Subtract line 7 from line 6 8

9 Divide the amount on line 8 by $10000 Enter the result as a decimal (rounded to at least three places) If the result is 1000 or more enter 1000 9

10 Multiply line 3 by line 9 10

11 Deduction for new motor vehicle taxes Subtract line 10 from line 3 Enter the result here and on Schedule A line 7 11

Schedule A (Form 1040) 2009

You cannot take this deduction if the amount on Form 1040 line 38 is equal to or greater than $135000 ($260000 if married filing jointly)

from Form 4684 lines 36 and 42b or Form amount of each expense Enter one total on For more details see Pub 5294797 line 18a line 28

bull Deduction for repayment of amounts bull Gambling losses but only to the ex-under a claim of right if $3000 or less tent of gambling winnings reported on Total Itemizedbull Convenience fee charged by the card Form 1040 line 21processor for paying your income tax (in- bull Casualty and theft losses of Deductionscluding estimated tax payments) by credit

income-producing property from Formor debit card The deduction is claimed for4684 lines 36 and 42b or Form 4797 linethe year in which the fee was charged to18a Line 29your card

bull Loss from other activities from Use the worksheet below to figure theSchedule K-1 (Form 1065-B) box 2 amount to enter on line 29 if the amount on

Form 1040 line 38 is over $166800bull Federal estate tax on income in re-($83400 if married filing separately)Other Miscellaneous spect of a decedent

bull Amortizable bond premium on bondsDeductions acquired before October 23 1986bull Deduction for repayment of amounts Line 30

under a claim of right if over $3000 See If you elect to itemize for state tax or otherLine 28Pub 525 for details purposes even though your itemized deduc-Only the expenses listed next can be de- bull Certain unrecovered investment in a tions are less than your standard deductionducted on this line List the type and

check the box on line 30pensionamount of each expense on the dotted linesbull Impairment-related work expenses ofnext to line 28 If you need more space

a disabled personattach a statement showing the type and

Itemized Deductions WorksheetmdashLine 29 Keep for Your Records

1 Enter the total of the amounts from Schedule A lines 4 9 15 19 20 27 and 28 12 Enter the total of the amounts from Schedule A lines 4 14 and 20 plus any gambling and casualty

or theft losses included on line 28 2

Be sure your total gambling and casualty or theft losses are clearly identified on thedotted lines next to line 28

3 Is the amount on line 2 less than the amount on line 1 No Your deduction is not limited Enter the amount from line 1 above on Schedule ASTOP

line 29 Yes Subtract line 2 from line 1 3

4 Multiply line 3 by 80 (80) 45 Enter the amount from Form 1040 line 38 56 Enter $166800 ($83400) if married filing separately) 67 Is the amount on line 6 less than the amount on line 5

No Your deduction is not limited Enter the amount from line 1STOP

above on Schedule A line 29 Yes Subtract line 6 from line 5 7

8 Multiply line 7 by 3 (03) 89 Enter the smaller of line 4 or line 8 9

10 Divide line 9 by 15 1011 Subtract line 10 from line 9 1112 Total itemized deductions Subtract line 11 from line 1 Enter the result here and on Schedule A

line 29 12

A-11

SCHEDULE C (Form 1040)

Profit or Loss From Business(Sole Proprietorship)

copy Partnerships joint ventures etc generally must file Form 1065 or 1065-Bcopy Attach to Form 1040 1040NR or 1041 copy See Instructions for Schedule C (Form 1040)

OMB No 1545-0074

Name of proprietor Social security number (SSN)

A Principal business or profession including product or service (see page C-2 of the instructions) B Enter code from pages C-9 10 amp 11

copy

C Business name If no separate business name leave blank D Employer ID number (EIN) if any

E Business address (including suite or room no) copy

City town or post office state and ZIP code

F Accounting method (1) Cash (2) Accrual (3) Other (specify) copy

G Did you ldquomaterially participaterdquo in the operation of this business during 2009 If ldquoNordquo see page C-3 for limit on losses Yes No

H If you started or acquired this business during 2009 check here copy

Part I Income 1 Gross receipts or sales Caution See page C-4 and check the box if

This income was reported to you on Form W-2 and the ldquoStatutory employeerdquo box on that form was checked or

You are a member of a qualified joint venture reporting only rental real estate income not subject to self-employment tax Also see page C-3 for limit on losses

copy

1

2 Returns and allowances 2

3 Subtract line 2 from line 1 3

4 Cost of goods sold (from line 42 on page 2) 4

5 Gross profit Subtract line 4 from line 3 5

6 Other income including federal and state gasoline or fuel tax credit or refund (see page C-4) 6 7 Gross income Add lines 5 and 6 copy 7

Part II Expenses Enter expenses for business use of your home only on line 30 8 Advertising 8

9 Car and truck expenses (see page C-4) 9

10 Commissions and fees 10

11 Contract labor (see page C-4) 11

12 Depletion 12

13 Depreciation and section 179 expense deduction (not included in Part III) (see page C-5) 13

14 Employee benefit programs (other than on line 19) 14

15 Insurance (other than health) 15

16 Interest

a Mortgage (paid to banks etc) 16a

b Other 16b

17 Legal and professional services 17

18 Office expense 18

19 Pension and profit-sharing plans 19

20 Rent or lease (see page C-6)

a Vehicles machinery and equipment 20a

b Other business property 20b

21 Repairs and maintenance 21

22 Supplies (not included in Part III) 22

23 Taxes and licenses 23

24 Travel meals and entertainment

a Travel 24a

b Deductible meals and entertainment (see page C-6) 24b

25 Utilities 25

26 Wages (less employment credits) 26

27 Other expenses (from line 48 on page 2) 27

28 Total expenses before expenses for business use of home Add lines 8 through 27 copy 28

29 Tentative profit or (loss) Subtract line 28 from line 7 29

30 Expenses for business use of your home Attach Form 8829 30

31 Net profit or (loss) Subtract line 30 from line 29

If a profit enter on both Form 1040 line 12 and Schedule SE line 2 or on Form 1040NR line 13 (if you checked the box on line 1 see page C-7) Estates and trusts enter on Form 1041 line 3 If a loss you must go to line 32

31

32 If you have a loss check the box that describes your investment in this activity (see page C-7)

If you checked 32a enter the loss on both Form 1040 line 12 and Schedule SE line 2 or on Form 1040NR line 13 (if you checked the box on line 1 see the line 31 instructions on page C-7) Estates and trusts enter on Form 1041 line 3 If you checked 32b you must attach Form 6198 Your loss may be limited

32a All investment is at risk

32b Some investment is not at risk

For Paperwork Reduction Act Notice see page C-9 of the instructions Cat No 11334P Schedule C (Form 1040) 2009

Schedule C (Form 1040) 2009 Page 2 Part III Cost of Goods Sold (see page C-8)

33 Method(s) used to value closing inventory a Cost b Lower of cost or market c Other (attach explanation)

34 Was there any change in determining quantities costs or valuations between opening and closing inventory If ldquoYesrdquo attach explanation Yes No

35 Inventory at beginning of year If different from last yearrsquos closing inventory attach explanation 35

36 Purchases less cost of items withdrawn for personal use 36

37 Cost of labor Do not include any amounts paid to yourself 37

38 Materials and supplies 38

39 Other costs 39

40 Add lines 35 through 39 40

41 Inventory at end of year 41

42 Cost of goods sold Subtract line 41 from line 40 Enter the result here and on page 1 line 4 42 Part IV Information on Your Vehicle Complete this part only if you are claiming car or truck expenses on line 9

and are not required to file Form 4562 for this business See the instructions for line 13 on page C-5 to find out if you must file Form 4562

43 When did you place your vehicle in service for business purposes (month day year) copy

44 Of the total number of miles you drove your vehicle during 2009 enter the number of miles you used your vehicle for

a Business b Commuting (see instructions) c Other

45 Was your vehicle available for personal use during off-duty hours Yes No

46 Do you (or your spouse) have another vehicle available for personal use Yes No

47a Do you have evidence to support your deduction Yes No

b If ldquoYesrdquo is the evidence written Yes No

Part V Other Expenses List below business expenses not included on lines 8ndash26 or line 30

48 Total other expenses Enter here and on page 1 line 27 48

Schedule C (Form 1040) 2009

OMB No 1545-0238

2010Form W-2G

Certain Gambling Winnings

This is important tax information and is being furnished to the Internal

Revenue Service If you are required to file a return a

negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that

it has not been reported

Copy C For Winnerrsquos

Records

CORRECTED (if checked)PAYERrsquoS name address ZIP code federal identification number and telephone number

WINNERrsquoS name address (including apt no) and ZIP code

1 Gross winnings 2 Federal income tax withheld

3 Type of wager 4 Date won

5 Transaction 6 Race

7 Winnings from identical wagers 8 Cashier

9 Winnerrsquos taxpayer identification no 10 Window

11 First ID 12 Second ID

13 StatePayerrsquos state identification no 14 State income tax withheld

Under penalties of perjury I declare that to the best of my knowledge and belief the name address and taxpayer identification number that I have furnished correctly identify me as the recipient of this payment and any payments from identical wagers and that no other person is entitled to any part of these payments

Signature copy Date copy

Form W-2G Department of the Treasury - Internal Revenue Service

5754

Form OMB No 1545-0239

Statement by Person(s) Receiving Gambling Winnings (Rev December 2008)

copy Payers of gambling winnings should see the separate Instructions for Forms W-2Gand 5754

Department of the TreasuryInternal Revenue Service Race number

Machine number

Game number

Type of winnings

Date won

Person to Whom Winnings Are Paid

Address

Name

Federal income taxwithheld

Amount received

Other ID

Taxpayer identification number

Persons to Whom Winnings Are Taxable (continued on page 2)

(e) Winnings fromidentical wagers

(b) Taxpayeridentification number

(d) Amount won

(c) Address

(a) Name

Under penalties of perjury I declare that to the best of my knowledge and belief the names addresses and taxpayer identification numbers that I have furnished correctlyidentify me as the recipient of this payment and correctly identify each person entitled to any part of this payment and any payments from identical wagers

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

copy Recipients of gambling winnings should see the instructions on the back of this form

For Paperwork Reduction Act Notice see back of form

Return to payer Do notsend to the IRS

Page 2

Form 5754 (Rev 12-2008) Persons to Whom Winnings Are Taxable (continued from page 1)

(d) Amount won

(c) Address

(a) Name

Purpose of form You must complete Form 5754 if youreceive gambling winnings either for someone else or asa member of a group of two or more people sharing thewinnings such as by sharing the same winning ticketThe information you provide on the form enables thepayer of the winnings to prepare Form W-2G CertainGambling Winnings for each winner to show the winningstaxable to each

Complete Part II to identify each winner and eachwinnerrsquos share of the winnings If you are also one of thewinners enter your information first in Part II by enteringldquoSame as aboverdquo in columns (a) (b) and (c) and theapplicable amounts in columns (d) and (e) Then completecolumns (a) through (e) for each of the other winnersReturn the form to the payer Taxpayer identification number The taxpayeridentification number for an individual is the socialsecurity number or individual taxpayer identificationnumber For all others it is the employer identificationnumber

Completing the form If you are the person to whomgambling winnings are paid enter your name addressand taxpayer identification number in Part I If thewinnings are from state-conducted lotteries the boxlabeled ldquoOther IDrdquo may be left blank The total amountreceived and the total federal income tax withheld mustbe entered in the remaining columns

Signature If federal income tax is withheld the personwho receives the winnings must sign and date the form Ifno federal income tax is withheld no signature isrequired

Paperwork Reduction Act Notice We ask for theinformation on this form to carry out the Internal Revenuelaws of the United States You are required to give us theinformation We need it to ensure that you are complyingwith these laws and to allow us to figure and collect theright amount of tax Regulations section 313402(q)requires you to furnish an information return to the payerif you receive gambling winnings either for someone elseor as a member of a group of two or more people sharingthe winnings such as by sharing the same winning ticket

The time needed to complete this form will varydepending on individual circumstances The estimatedaverage time is 12 minutes If you have comments concerning the accuracy of thistime estimate or suggestions for making this formsimpler we would be happy to hear from you You canwrite to the Internal Revenue Service Tax ProductsCoordinating Committee SEWCARMPTTSP 1111Constitution Avenue NW IR-6526 Washington DC20224 Do not send this form to this address Insteadreturn it to the payer

Part II

Instructions for Recipient of GamblingWinnings

You are not required to provide the informationrequested on a form that is subject to the PaperworkReduction Act unless the form displays a valid OMBcontrol number Books or records relating to a form or itsinstructions must be retained as long as their contentsmay become material in the administration of any InternalRevenue law Generally tax returns and returninformation are confidential as required by section 6103

Form 5754 (Rev 12-2008)

11 12

(keep for your records)

Nonemployee compensation

CORRECTED (if checked)OMB No 1545-0115Rents1PAYERrsquoS name street address city state ZIP code and telephone no

$2 Royalties

$Other income3

RECIPIENTrsquoS identificationnumber

PAYERrsquoS federal identificationnumber

5 Fishing boat proceeds 6 Medical and health care payments

$ $RECIPIENTrsquoS name Substitute payments in lieu of

dividends or interest87

$$9Street address (including apt no) 10 Crop insurance proceeds

City state and ZIP code

Gross proceeds paid toan attorney

14Excess golden parachutepayments

13Account number (see instructions)

$16 State tax withheld 17 StatePayerrsquos state no

$Department of the Treasury - Internal Revenue Service

18 State income

$

$$ $

4

$ $

Payer made direct sales of$5000 or more of consumerproducts to a buyer(recipient) for resale

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

This is important taxinformation and isbeing furnished to

the Internal RevenueService If you are

required to file areturn a negligence

penalty or othersanction may be

imposed on you ifthis income is

taxable and the IRSdetermines that it

has not beenreported

Federal income tax withheld

Section 409A income15bSection 409A deferrals15a

$ $

2010

Box 15a May show current year deferrals as a nonemployee under anonqualified deferred compensation (NQDC) plan that is subject to therequirements of section 409A plus any earnings on current and prior yeardeferrals

Boxes 1 and 2 Report rents from real estate on Schedule E (Form 1040)However report rents on Schedule C or C-EZ (Form 1040) if you providedsignificant services to the tenant sold real estate as a business rentedpersonal property as a business or you and your spouse elected to be treatedas a qualified joint venture Report royalties from oil gas or mineral propertieson Schedule E (Form 1040) However report payments for a working interestas explained in the box 7 instructions For royalties on timber coal and ironore see Pub 544

Box 8 Shows substitute payments in lieu of dividends or tax-exempt interestreceived by your broker on your behalf as a result of a loan of your securitiesReport on the ldquoOther incomerdquo line of Form 1040

Box 3 Generally report this amount on the ldquoOther incomerdquo line of Form 1040and identify the payment The amount shown may be payments received asthe beneficiary of a deceased employee prizes awards taxable damagesIndian gaming profits or other taxable income See Pub 525 If it is trade orbusiness income report this amount on Schedule C C-EZ or F (Form 1040)

Box 9 If checked $5000 or more of sales of consumer products was paid toyou on a buy-sell deposit-commission or other basis A dollar amount doesnot have to be shown Generally report any income from your sale of theseproducts on Schedule C or C-EZ (Form 1040)

Box 4 Shows backup withholding or withholding on Indian gaming profitsGenerally a payer must backup withhold at a 28 rate if you did not furnishyour taxpayer identification number See Form W-9 and Pub 505 for moreinformation Report this amount on your income tax return as tax withheld

Box 10 Report this amount on line 8 of Schedule F (Form 1040)

Account number May show an account or other unique number the payerassigned to distinguish your account

Box 5 An amount in this box means the fishing boat operator considers youself-employed Report this amount on Schedule C or C-EZ (Form 1040) SeePub 334

Box 6 For individuals report on Schedule C or C-EZ (Form 1040)

Box 7 Shows nonemployee compensation If you are in the trade or businessof catching fish box 7 may show cash you received for the sale of fish Ifpayments in this box are SE income report this amount on Schedule C C-EZor F (Form 1040) and complete Schedule SE (Form 1040) You received thisform instead of Form W-2 because the payer did not consider you anemployee and did not withhold income tax or social security and Medicare taxIf you believe you are an employee and cannot get the payer to correct thisform report the amount from box 7 on Form 1040 line 7 (or Form 1040NRline 8) You must also complete Form 8919 and attach it to your return

Box 13 Shows your total compensation of excess golden parachute paymentssubject to a 20 excise tax See the Form 1040 instructions for where toreportBox 14 Shows gross proceeds paid to an attorney in connection with legalservices Report only the taxable part as income on your return

Instructions for Recipient

Box 15b Shows income as a nonemployee under an NQDC plan that doesnot meet the requirements of section 409A This amount is also included inbox 7 as nonemployee compensation Any amount included in box 15a that iscurrently taxable is also included in this box This income is also subject to asubstantial additional tax to be reported on Form 1040 See ldquoTotal Taxrdquo in theForm 1040 instructions

Amounts shown may be subject to self-employment (SE) tax If your netincome from self-employment is $400 or more you must file a return andcompute your SE tax on Schedule SE (Form 1040) See Pub 334 for moreinformation If no income or social security and Medicare taxes were withheldand you are still receiving these payments see Form 1040-ES Individualsmust report these amounts as explained in the box 7 instructions on this pageCorporations fiduciaries or partnerships must report the amounts on theproper line of their tax returns

Boxes 16ndash18 Shows state or local income tax withheld from the payments

Recipientrsquos identification number For your protection this form may showonly the last four digits of your social security number (SSN) individualtaxpayer identification number (ITIN) or adoption taxpayer identificationnumber (ATIN) However the issuer has reported your complete identificationnumber to the IRS and where applicable to state andor local governments

Form 1099-MISC incorrect If this form is incorrect or has been issued inerror contact the payer If you cannot get this form corrected attach anexplanation to your tax return and report your income correctly

FinCEN Form 102

Suspicious Activity Report by Casinos and Card Clubs

Please type or print Always complete entire report Items

marked with an asterisk are considered critical (see instructions) OMB No 1506 - 0006

1 Check the box if this report corrects a prior report (see instructions on page 6)

16 Date of birth

_____________ MM DD YYYY

12 Country (if not US)

17 Government issued identification (if available) a Driverrsquos licensestate ID b Passport c Alien registration d Other ___________________________________________

e Number f Issuing state or country________________________

27 If law enforcement or a regulatory agency has been contacted (excluding submission of a SARC) check the appropriate box

Subject Information 2 Check box (a) if more than one subjectPart I box (b) subject information unavailable

4 First name 5 Middle initial

6 also known as (AKA- individual) doing business as (DBA- entity)

3 Individualrsquos last name or entityrsquos full name

7 Occupation type of business

8 Address

10 State

14 SSN ITIN (individual) or EIN (entity) 15 Account number No account af fected Account open Yes

No

23 Date action taken(22)

______________ MM DD YYYY

19 Phone number - home18 Phone number - work

21 Affiliation or relationship to casinocard club a Customer b Agent c Junket tour operator d Employee e Check cashing operator

f Supplier g Concessionaire h Other (Explain in Part VI)

22 Does casinocard club still have a business association andor an employeeemployer relationship with suspect

a Yes b No If no why c Barred d Resigned e Terminated f Other (S pecify in Part VI)

Suspicious Activity Information Part II

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

26 Type of suspicious activity a Briberygratuity b Check fraud (includes counterfeit) c Creditdebit card fraud (incl counterfeit) d Embezzlementtheft e Large currency exchange(s) f Minimal gaming with large transactions

Part III Law Enforcement or Regulatory Contact Information

a DEA e US Customs Service i State law enforcement b US Attorney ( 28) f US Secret Service j Tribal gaming commission c IRS g Local law enforcement k Tribal law enforcement d FBI h State gaming commission l Other (List in item 28) 28 Other authority cont acted (for box 27 g through l) List US Attorney office here 29 Name of person contacted (for all of box 27)

31 Date Contacted30 Telephone number of individual contacted in box 29 ________________

MM DD YYYY

24 Date or date range of suspicious activity 25 Total dollar amount involved in suspicious activity

g Misuse of position h Money laundering i No apparent business or lawful purpose j Structuring k Unusual use of negotiable instruments (checks) l Use of multiple credit or deposit accounts

m Unusual use of wire transfers n Unusual use of counter checks

or markers o False or conflicting ID(s) p Terrorist financing q Other (Describe in Part VI)

9 City

13 Vehicle license st ate (optional) a number b state

( ) ( ) 20 E-mail address (if available)

11 ZIP code

( )

April 2003 Previous editions will not be

accepted after December 31 2003

$ 00

Cataloge Number 35636U

Part IV Reporting Casino or Card Club Information 2 32 Trade name of casino or card club 33 Legal name of casino or card club 34 EIN

35 Address

36 City 37 State 38 ZIP code

39 Type of gaming institution

a State licensed casino b Tribal licensed casino c Card club d Other (specify)______________________

Part V Contact for Assistance 40 Last name of individual to be contacted regarding this report 41 First name 42 Middle initial

43 TitlePosition 44 Work phone number

( ) _______________ MM DD YYYY

45 Date report prepared

Part VI Suspicious Activity Information - Narrative Explanationdescription of suspicious activity(ies) This section of the report is critical The care with which it is completed may determine whether or not the described activity and its possible criminal nature are clearly understood by investigators Provide a clear complete and chronological description (not exceeding this page and the next page ) of the activity including what is unusual irregular or suspicious about the transaction(s) using the checklist below as a guide as you prepare your account

a Describe the conduct that raised suspicion b Explain whether the transaction(s) was completed or only attempted c Describe supporting documentation and retain such documentation for

your file for five years d Explain who benefited financially or otherwise from the

transaction(s) how much and how (if known) e Describe and retain any admission or explanation of the

transaction(s)provided by the subject(s) witness(s) or other person(s) Indicate to whom and when it was given Include witness or other person ID

f Describe and retain any evidence of cover-up or evidence of an attempt to deceive federal or state examiners or others

g Indicate where the possible violation of law(s) took place (eg branch cage specific gaming pit specific gaming area)

h Indicate whether the suspicious activity is an isolated incident or relates to another transaction

i Indicate whether there is any related litigation If so specify the name of the litigation and the court where the action is pending

j Recommend any further investigation that might assist law enforcement authorities

k Indicate whether any information has been excluded from this report if so state reasons

l Indicate whether any US or foreign currency andor US or foreign negotiable instrument(s) were involved If foreign provide the amount name of currency and country of origin

m Indicate whether funds or assets were recovered and if so enter the dollar value of the recovery in whole dollars only n Indicate any additional account number(s) and any domestic or

foreign bank(s) account numbers which may be involved o Indicate for a foreign national any available information on subjectrsquos

passport(s) visa(s) andor identification card(s) Include date country city of issue issuing authority and nationality

p Describe any suspicious activities that involve transfer of funds to or from a foreign country or any exchanges of a foreign currency Identify the currency country sources and destinations of funds

q Describe subject(s) position if employed by the casino or card club (eg dealer pit supervisor cage cashier host etc)

r Indicate the type of casino or card club filing this report if this is not clear from Part IV

s Describe the subject only if you do not have the identifying informa-tion in Part I or if multiple individuals use the same identification Use descriptors such as male female age etc

t Indicate any wire transfer in or out identifier numbers including the transfer companyrsquos name

u If correcting a prior report complete the form in its entirety and note the changes here in Part VI

NOTE Information already provided in earlier parts of this form need not necessarily be repeated if the meaning is clear

Tips on SAR Form preparation and filing are available in the SAR Activity Review at wwwfincengovpub_reportshtml

Supporting documentation should not be filed with this report Maintain the information for your files

Do not include legal disclaimers in this narrative Continue on next page as necessary

Suspicious Activity Report Narrative (continued from page 2)

FinCEN Form 102a SAR- Casinos and Card Clubs Instructions 1 Safe Harbor Federal law (31 USC 5318(g)(3)) provides complete protection from civil liability for all reports of suspicious transactions made to appropriate authorities including supporting docu-mentation regardless of whether such reports are filed pursuant to this reportrsquos instructions or are filed on a voluntary basis Specifically the law provides that a financial institution and its direc-tors officers employees and agents that make a disclosure of any possible violation of law or regu-lation including in connection with the prepara-tion of suspicious activity reports ldquoshall not be liable to any person under any law or regulation of the United States any constitution law or regula-tion of any State or political subdivision of any state or under any contract or other legally en-forceable agreement (including any arbitration agree-ment) for such disclosure or for any failure to provide notice of such disclosure to the person who is the subject of such disclosure or any other person identified in the disclosurerdquo

Notification Prohibited Federal law (31 USC 5318(g)(2)) provides that a financial institution and its directors officers employees and agents who voluntarily by means of a suspicious activity report report suspicious transactions to the gov-ernment may not notify any person involved in the transaction that the transaction has been re-ported

In situations involving suspicious transac-tions requiring immediate attention such as when a reportable transaction is ongo-ing the financial institution shall imme-diately notify by telephone appr opriate law enforcement and financial institution regulatory authorities i n addition to filing a timely s uspicious a ctivity r eport

When To File A Report

1 Every casino and card club (for purposes of 31 CFR 103 a ldquoreporting casinordquo) shall file with FinCEN to the extent and in the manner required by 31 CFR 103 a report of any suspicious transaction relevant to a possible violation of law or regulation A casino may also file with FinCEN by using the Suspicious Activity Report by Casinos (SARC) a report of any suspicious transaction that it believes is relevant to the possible violation of any law or regulation but whose reporting is not required by 31 CFR 103

2 A transaction requires reporting under the terms of 31 CFR 10321 if it is conducted or attempted by at or through a casino and involves or aggregates at least $5000 in funds or other assets and the casino knows suspects or has reason to suspect that the transaction (or a pattern of transactions of which the transaction is a part)

(i)Involves funds derived from illegal activity or is intended or conducted in order to hide or disguise funds or assets derived from illegal activity (including without limitation the ownership nature source location or control of

such funds or assets) as part of a plan to violate or evade any federal law or regulation or to avoid any transaction reporting require-ment under federal law or regulation

(ii) Is designed whether through structuring or other means to evade any requirements of 31 CFR 103 or of any other regulations promulgated under the Bank Secrecy Act Public Law 91-508 as amended codified at 12 USC 1829b 12 USC 1951-1959 and 31 USC 5311-5332

(iii) Has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage and the casino knows of no reasonable explanation for the transaction after examining the available facts including the background and possible purpose of the transaction or

(iv) Involves use of the casino to facilitate criminal activity

3 A SARC shall be filed no later than 30 calendar days after the date of the initial detection by the reporting casino of facts that may constitute a basis for filing a SAR under this section If no suspect is identified on the date of such initial detection a casino may delay filing a SARC for an additional 30 calendar days to identify a suspect but in no case shall reporting be delayed more than 60 calendar days after the date of such initial detection In situations involving violations that require immediate attention such as ongoing money laundering schemes the reporting casino shall immediately notify by telephone an appropriate law enforcement authority in addition to filing timely a SARC Casinos wishing to voluntarily report suspicious transactions that may relate to terrorist activity may call FinCENrsquos Financial Institutions Hotline at 1-866-556-3974 in addition to filing timely a SARC if required by 31 CFR 103

4 Exceptions A casino is not required to file a SARC for a robbery or burglary committed or attempted that is reported to appropriate law enforcement authorities

5 The Bank Secrecy Act requires financial institutions to file currency transaction reports (CTRs) in accordance with the Department of the Treasuryrsquos implementing regulations (31 CFR Part 103) These regulations require a financial institution to file a CTR whenever a currency transaction exceeds $10000 CFR 31 10322(b)(2) requires that all casinos and card clubs file using FinCEN 103 (CTRC) If a currency transaction exceeds $10000 and is suspicious the institution must file both a CTRC reporting the currency transaction and a suspicious activity report reporting the suspicious aspects of the transaction If a currency transaction is $10000 or less and is suspicious the institution should only file a suspicious activity report Appropriate records must be maintained in each case See 31 CFR Part 103

General Instructions

A Abbreviations and Definitions

1 AKA--also known as 2 DBA--doing business as 3 DEA--Drug Enforcement Administration 4 EIN--Employer Identification Number 5 FBI--Federal Bureau of Investigation 6 IRS--Internal Revenue Service (AML or CI) 7 ITIN--Individual Taxpayer Identification

Number 8 SSN--Social security number

B How to Make a Report

1 This form should be e-filed through the Bank Secr ecy Act E-Filing System Go to httpbsaefilingfincentreasgov to r egister This form is also available for download on the Financial Crimes Enforcement Networkrsquos Web site at wwwfincengov or may be ordered by calling the IRS Forms Distribution Center at (800) 829-3676

If not filed electronically send each completed suspicious activity report to

Detroit Computing Center ATTN SARC PO Box 33980Detroit MI 48232-5980

2 While all items should be completed fully and accurately items marked with an asterisk () are considered critical and must be completed according to the provisions of paragraph 3 below and any special item instructions

3 If the information for a critical item marked with an asterisk () is not known or not applicable enter special response ldquoXXrdquo as appropriate to com-plete the item Non-asterisk fields should be left blank if the information is unknown or not appli-cable NOTE The XX response may not be used in item 24 (Date or date range of suspicious activ-ity) item 25 (Total dollar amount involved in suspicious activity) the check boxes in item 26 (one or more boxes must be checked) and in Parts IV V or VI

4Complete each suspicious activity report by providing as much information as possible on initial and corrected reports

5 Do not include supporting documentation with the suspicious activity report filed Identify and retain a copy of the suspicious activity report and all supporting documentation or business record equivalents for your files for five (5) years from the date of the suspicious activity report All supporting documentation such as canceled checks confessions credit bureau reports credit slipsvouchers depositwithdrawal slips multiple transaction logs player rating records slot club records identification credentials spreadsheets photographs surveillance audio andor video recording media and surveillance logs For casinos that have hotels and in the absence of any

2 information other than a customerrsquos name other supporting documentation such as creditdebit cards guest folios and safety deposit box registrations All supporting documentation referenced above must be made available to appropriate authorities upon request

6 If more than one subject is being reported make a copy of page 1 and complete only the subject information Part I and attach the additional page(s) behind page 1 If more space is needed to complete any other item(s) identify that item in Part VI by ldquoitem numberrdquo and provide the additional information

7 Type or complete the report using block written letters

8 Enter all dates in MMDDYYYY format where MM = month DD = day and YYYY = year Precede any single number with a zero ie 01 02 etc

9 Enter all telephone numbers with (area code) first and then the seven numbers using the format (XXX) XXX-XXXX List international telephone and fax numbers in Part VI

10 Always enter an individualrsquos name by entering the last name first name and middle initial (if known) If a legal entity is listed enter its name in the last name field

11 Enter all identifying numbers (Alien registration Driverrsquos LicenseState ID EIN ITIN Foreign National ID Passport SSN etc) starting from left to right Do not include spaces dashes or other punctuation

12 Enter all Post Office ZIP codes with at least the first five numbers (all nine (ZIP+4)) if known) and listed from left to right

13 Enter all monetary amounts in US Dollars Use whole dollar amounts rounded up when necessary Use this format $000000000 If foreign currency is involved state name of the currency and country of origin

14 Addresses general Enter the permanent street address city two letter stateterritory abbreviation used by the US Postal Service and ZIP code (ZIP+4 if known) of the individual or entity A post office box number should not be used for an individual unless no other address is available For an individual also enter any apartment number or suite number and road or route number If a PO Box is used for an entity enter the street name suite number and road or route number If the address of the individual or entity is in a foreign country enter the city province or state postal code and the name of the country Complete any part of the address that is

known even if the entire address is not known If from the United States leave country box blank

C Specific Suspicious Activity Repor t Preparation Instructions

Item 1-- Check box ldquocorrects prior reportrdquo if this report is filed to correct a previously filed SARC To correct a report a new SARC must be completed in its entirety Also note corrected information in Part VI (see line ldquourdquo)

Part I Subject Information

Note Enter information about the person(s) or entity involved that caused this report to be filed not the victim of the activity

Casinos and card clubs may rely upon their own internal records including copies of federal forms which contain verified customer information to identify the subjects of these reports These records may include credit deposit or check cashing account records or a filed FinCEN Form 103 (CTRC ) IRS Form W-2G (Certain Gambling Winnings) (eg pertaining to a keno or slot win) IRS form W-9 (Request for Taxpayer Identification Number and Certification) or any tax or other form containing such customer information If casinos do not have verified identification information on the customer they should consult whatever other sources of customer information that are available within internal records (player rating records slot club records etc) If the subject is an ldquounknownrdquo casinos that offer hotels including conferenceseminar facilities entertainment venues and resort amenities should consider using whatever other internal sources are available to obtain customer identification such as creditdebit card numbers hotel registrations ndash eg guest folios safe deposit box registrations show spa transportation and

or tour reservations etc

Item 2 -- Multiple Subjects If there are mul-tiple subjects involved check box ldquo2ardquo and com-plete a separate Part I for each subject Check box ldquo2brdquo only if NO critical subject information is available If ANY subject information is available record that information in Part 1 leave box ldquo2brdquo blank and insert the appropriate special response ldquoXXrdquo in any critical item for which data is missing This will alert law enforcement and regulatory users of the BSA database that this information has not been inadvertently omitted

Items 3 4 and 5--Name of Subject See General Instruction B3 and B10 If the subject is an entity enter the legal name in item 3 enter XX in item 4 and leave item 5 blank If the entity is operated under a different trade or business name than its legal name enter the entityrsquos legal name in Item 3 (eg Smith Enterprises Inc) and the name of the business in Item 6 (eg Smithrsquos Tours) If

more than one Part I is required make a copy of page 1 and provide the additional information

Item 6-- also known as (AKA-individual) or doing business as (DBA-entity) If a reporting casino or card club has knowledge of a subjectrsquos separate ldquoAKArdquo or an entityrsquos DBA name enter it in item 6

Item 7-- Occupationtype of business Fully identify the occupation profession or business of the individual or entity shown in Items 3 through 5 (eg accountant attorney carpenter truck driver check casher etc) Do not use nondescript terms such as merchant self-employed businessman or salesperson If the subjectrsquos business activities can be described more fully than just by occupation provide additional information in Part VI Indicate in Item 7 if unknown

Items 8 9 10 1 1 and 12-- Address See General Instructions B3 B12 and B14

Item 13-- Vehicle license number (optional) Enter the subjectrsquos vehicle license plate number and issuing state if known or available

Item 14-- SSNITIN (individual) or EIN (entity) See General Instruction B3 and B11 and definitions If the subject named in Items 3 through 5 is a US Citizen or an alien with a SSN enter his or her SSN in Item 13 If that individual is an alien who has an ITIN enter that number If the subject is an entity enter the EIN If unknown enter XX in the first two spaces

Item 15-- Account number See General Instruction B11 Enter the number of any account in or through which the suspicious activity occurred If an account is not affected or if no affected account is known mark the ldquono account affectedrdquo box Check box to indicate if the account is open or closed If more than one account is affected provide the additional information in Part VI

Item 16-- Date of birth See General Instruction B8 If an individual is named in Items 3 through 5 enter the date of birth If t h e month andor day is not available or is unknown fill in with zeros (eg ldquo01001969rdquo indicates an unknown date in January 1969)

Item 17-- Government issued iden-tification (if available) See General Instruction B3 and B11 Check the appropriate box(es) showing the type of document used to verify the subjectrsquos identity If you check box ldquodrdquo (Other) be sure to specify the type of document used In box ldquoerdquo list the number of the identifying document In box ldquofrdquo list the issuing state or country If more space is required enter the information in Part VI If all information for item

3 17 is unknown check box ldquodrdquo and enter ldquoXXrdquo in recordkeeping or reporting requirement the space proved for ldquootherrdquo promulgated under the Bank Secrecy Act Check

box ldquoordquo if the ID presented does not match the Items 18 19-- Telephone numbers See individual or if multiple IDrsquos conflict If you check

General Instruction B9 (telephone) List any box ldquoqrdquo for Other you must describe in Part VI additional number(s) (eg hotel cell fax the type of suspicious activity that occurred that international etc) in Part VI is not listed in Item 26 Use of ldquoXXrdquo does not

apply to this item At least one box must be Item 20-- E-mail address List e-mail address checked

if available Part III Law Enforcement or Regulatory

Item 21-- Affiliationrelationship to casino Contact Information If box ldquodrdquo (employee) is checked indicate in Part VI the subjectrsquos position (eg dealer pit Note If no contact go to Par t IV supervisor cage cashier host etc) and the subjectrsquos involvement If box ldquohrdquo (other) is Item 27 28 and 29-- Contacting checked briefly describe in Part VI enforcement authorities See General

Instructions ldquoA Abbreviations and Definitionsrdquo Items 22 and 23-- Continuing business for law enforcement and regulatory identities If

association andor employeremployee the casinocard club has contacted any law relationship If the ldquonordquo box is checked check enforcement or regulatory agency about the the appropriate box to indicate what action suspicious activity by telephone or written occurred that ended the relationship Indicate the communication (excluding submission of a SARC) date that action was taken in Item 23 (see General check the appropriate box in item 27 Instruction B8)

In Item 28 provide the name of the authority PART II Suspicious Activity Information contacted if box ldquobrdquo or boxes ldquogrdquo through ldquolrdquo are

checked Item 24-- Date or date range of suspicious

activity See General Instruction B8 Enter the In Item 29 provide the name of the individual date of the reported activity in the ldquoFromrdquo field contacted for all of box 27 Contact with law If more than one day indicate the duration of the enforcement agencies does not eliminate the activity by entering the first date in the ldquoFromrdquo requirement to file the SARC field and the last date in the ldquoTordquo field If the same individual or organization conducts multiple Item 30-- Telephone number See General or related activities within the 30 calendar day Instruction B9 Enter telephone number of the period after the date of initial detection the individual listed in item 29 reporting institution may consider reporting the suspicious transactions on one form but only if Item 31-- Date contacted See General doing so will fully describe what has occurred A Instruction B8 new report must be filed for other related suspicious transactions committed after the initial detection Part IV Reporting Casino or Card Club period ldquoXXrdquo may not be used in either date field Information entry

Item 32-- Casino or card clubrsquos trade Item 25-- T otal dollar amount See General name Enter the name by which the casino or

Instruction B13 Enter the total dollar value of card club does business and is commonly known the funds or asset(s) involved in the suspicious Do not enter a corporate partnership or other activity which is conducted by the same individual entity name unless such name is the one by which or organization within the 30 calendar day period the casino is commonly known after the date of initial detection For multiple or related suspicious transactions show the breakdown Item 33-- Casino or card clubrsquos legal of this aggregated total in Part VI For individual(s) name Enter the legal name as shown on required with a relationship to the casino (reference Item tax filings only if different from the trade name 21 ldquobldquo through ldquohrdquo) the value of this item can be shown in Item 32 The legal name should match zero (0) Do not use any words such as ldquothousandrdquo the name shown on the charter or other document ldquomillionrdquo etc If the dollar amount is unknown or creating the entity and which is identified with no dollar amount is involved enter a zero (0) in the casinorsquos established employer identification item 25 number

Item 26-- T ype of suspicious activity Check Item 34-- Employer identification the box(es) which best identify the suspicious number Enter the institutionrsquos nine-digit EIN activity If the activity involves exchanging numerous small denomination bills for large Items 35 36 37 and 38-- Address denomination bills at the cage after the subject See General Instruction B14 engages in minimal or no gaming activity check boxes ldquoerdquo and ldquofrdquo Check box ldquojrdquo for Structuring Item 39-- Type of gaming institution Check when a subject acting alone in conjunction with the appropriate box for the type of gaming or on behalf of other subjects conducts or attempts institution Check box ldquoardquo for a land-based or to conduct activity designed to evade any

riverboat casino that is duly licensed by a State Territory or Insular Possession of the United States Check box ldquobrdquo for a tribal casino (ie a Class III gaming operation) Check boxes ldquoardquo and ldquobrdquo for a tribal casino duly licensed by a state gaming regulatory agency Check box ldquocrdquo for a card club gaming club and card room or gaming room (including one operating on Indian lands) If you check box ldquodrdquo for ldquoOtherrdquo be sure to specify the type of gaming institution (eg race track)

Part V Contact for Assistance

Items 40 41 and 42-- Contact individual See General Instruction B10

Item 43 TitlePosition-- Enter the job title position of the contact individual

Item 44 W ork phone number -- See General Instruction B9

Item 45 Date report prepared-- See General Instructions item B8

PART VI Suspicious Activity Information -- Narrative See FinCEN Form102 page 2 for instructions

Paperwork Reduction Act Notice The purpose of this form is to provide an effective means for financial institutions to notify appropriate law en-forcement agencies of suspicious transactions that occur by through or at the financial institutions This report is required by law pursuant to authority contained in 31 USC 5318(g) Information col-lected on this report is confidential (31 USC 5318(g)) Federal securities regulatory agencies and the US Departments of Justice and Treasury and other authorized authorities may use and share this information Public reporting and record keeping burden for this form is estimated to average 2 hours per response and includes time to gather and main-tain information for the required report review the instructions and complete the information collection Send comments regarding this burden estimate including suggestions for reducing the bur-den to the Office of Management and Budget Pa-perwork Reduction Project Washington DC 20503 and to the Financial Crimes Enforcement Network Attn Paperwork Reduction Act PO Box 39 Vienna VA 22183-0039 The agency may not conduct or sponsor and an organization (or a per-son) is not required to respond to a collection of information unless it displays a currently valid OMB control number

Rev Proc 77-29 1977-2 CB 538 1977 WL 42691 (IRS RPR)

Internal Revenue Service (IRS)

Revenue Procedure

Published 1977 SECTION 1 PURPOSE The purpose of this revenue procedure is to provide guidelines to taxpayers concerning the treatment of wagering gains and losses for Federal income tax purposes and the related responsibility for maintaining adequate records in support of winnings and losses SEC 2 BACKGROUND Income derived from wagering transactions is includible in gross income under the provisions of section 61 of the Internal Revenue Code of 1954 Losses from wagering transactions are allowable only to the extent of gains from such transactions under section 165(d) of the Code and may be claimed only as an itemized deduction Temporary regulations section 76041-1 (TC 7492 1977-2 CB 463) effective May 1 1977 require all persons in a trade or business who in the course of that trade or business make any payment of $1200 or more in winnings from a bingo game or slot machine play or $1500 or more in winnings from a keno game to prepare Form W-2G Statement for Certain Gambling Winnings for each person to whom the winnings are paid In determining whether such winnings equal or exceed the $1500 reporting floor and in determining the amount to be reported on Form W-2G in the case of a keno game the amount of winnings from any one game shall be reduced by the amount wagered for that one game In the case of bingo or slot machines the total winnings will not be re-duced by the amount wagered Forms W-2G reporting such payments must be filed with the Internal Revenue Ser-vice on or before February 28 following the year of payment Winnings of $600 or more unreduced by the amount of the wagers must also be reported for every person paid gambling winnings from horse racing dog racing or jai alai if such winnings are at least 300 times the amount wa-gered Winnings of $600 or more unreduced by the amount of the wagers must also be reported for every person paid gambling winnings from state conducted lotteries Under Section 6001 of the Code taxpayers must keep records necessary to verify items reported on their income tax returns Records supporting items on a tax return should be retained until the statute of limitations on that return expires SEC 3 PROCEDURES An accurate diary or similar record regularly maintained by the taxpayer supplemented by verifiable documentation will usually be acceptable evidence for substantiation of wagering winnings and losses In general the diary should contain at least the following information

1) Date and type of specific wager or wagering activity 2) Name of gambling establishment 3) Address or location of gambling establishment 4) Name(s) of other person(s) (if any) present with taxpayer at gambling establishment and 5) Amount(s) won or lost

Verifiable documentation for gambling transactions includes but is not limited to Forms W-2G Forms 5754 State-ment by Person Receiving Gambling Winnings wagering tickets canceled checks credit records bank withdrawals and statements of actual winnings or payment slips provided to the taxpayer by the gambling establishment

Where possible the diary and available documentation generated with the placement and settlement of a wager should be further supported by other documentation of the taxpayers wagering activity or visit to a gambling estab-lishment Such documentation includes but is not limited to hotel bills airline tickets gasoline credit cards can-celed checks credit records bank deposits and bank withdrawals Additional supporting evidence could also include affidavits or testimony from responsible gambling officials re-garding wagering activity The Service is required to report to the Congress by 1979 on the issue of whether casiono winnings should be sub-ject to withholding In the absence of legislation requiring withholding on casino winnings the instructions for pre-paring Form 5754 will not be applicable to winnings from keno bingo or slot machines However all other items of documentation to verify gambling copies of the taxpayers casino credit applicable With regard to specific wagering transactions winnings and losses may be further supported by the following items

01 Keno-Copies of keno tickets purchased by the taxpayer and validated by the gambling establishment copes of the taxpayers casino credit records and copies of the taxpayers casino check cashing records 02 Slot Machines-A record of all winnings by date and time that the machine was played (In Nevada the ma-chine number is the number required by the State Gaming Commission and may or may not be displayed in a prominent place on the machine If not displayed on the machine the number may be requested from the casino operator) 03 Table Games Twenty One (Blackjack) Craps Poker Baccarat Roulette Whell of Fortune Etc- The num-ber of the table at which the taxpayer was playing Casino credit card data indicating whether the credit was is-sued in the pit or at the cashiers cage 04 Bingo-A record of the number of games played cost of tickets purchased and amounts collected on winning tickets Supplemental records include any receipts from the casino parlor etc 05 Racing Horse Harness Dog Etc-A record of the races entries amounts of wagers and amounts collected on winning tickets and amounts lost on losing tickets Supplemental records include unredeemed tickets and payment records from the racetrack 06 Lotteries-A record of ticket purchases dates winnings and losses Supplemental records include unre-deemed tickets payment slips and winnings statement

SEC 4 LIMITATIONS The recordkeeping suggestions set forth above are intended as general guidelines to assist taxpayers in establishing their reportable gambling gains and deductible gambling losses While following these will enable most taxpayers to meet their obligations under the Internal Revenue Code these guidelines cannot be all inclusive and the tax liability of each depends on the facts and circumstances of particular situations Rev Proc 77-29 1977-2 CB 538 1977 WL 42691 (IRS RPR)

Office of Chief CounselInternal Revenue ServiceMemorandumRelease Number AM2008-011

Release Date 121208CCITAB01POSTN-138904-08

Third Party Communication NoneDate of Communication Not Applicable

UILC 16508-00 6100-00

date December 05 2008

to Roland BarralArea Counsel(Large amp Mid-Size Business)

from George J BlaineAssociate Chief Counsel(Income Tax amp Accounting)

subject Reporting of Wagering Gains and Losses

This Chief Counsel Advice responds to your request for assistance about a

recurring issue in litigation This advice may not be used or cited as precedent

ISSUE

How does a casual gambler determine wagering gains and losses from slot

machine play

FACTS

The taxpayer (Mrs X) is a casual gambler The taxpayer uses the cash

receipts and disbursements method of accounting and files her returns on a calendar

year basis The taxpayer properly substantiates all gains and losses incurred in her

POSTN-138904-08 2

wagering transactions pursuant to sect 6001 of the Internal Revenue Code and Rev

Proc 77-29 1977-2 CB 538

The taxpayer is retired on a modest fixed income Therefore she carefully

limits the amount of money she gambles Her practice is to commit only $100 to slot

machine play on any visit to a casino She wagers until she loses the original $100

committed to gambling or until she stops gambling and ldquocashes outrdquo Upon cashing

out the taxpayer may have $100 (the basis of her wagers) less than $100 (a

wagering loss) or more than $100 (a wagering gain)

The taxpayer went to a casino to play the slot machines on ten separate

occasions throughout the year On each visit to the casino the taxpayer exchanged

$100 of cash for $100 in slot machine tokens and used the tokens to gamble

Taxpayer did not use cash credit or ldquoplayerrsquos cardsrdquo to gamble On five occasions

the taxpayer lost her entire $100 in tokens before terminating play On the other five

occasions the taxpayer redeemed her remaining tokens for the following amounts of

cash $20 $70 $150 $200 and $300

ANALYSIS

Section 61 provides that gross income means all income from whatever source

derived Rev Rul 54-339 1954-2 CB 89 holds that wagering gains are included in

gross income See Umstead v Commissioner TC Memo 1982-573 44 TCM 1294

1295 (1982)

Section 165(a) allows a deduction for any loss sustained during the taxable

year and not compensated for by insurance or otherwise

POSTN-138904-08 3

Section 165(d) provides that losses from wagering transactions are allowed

only to the extent of the gains from such transactions

Section 1165-10 of the Income Tax Regulations provides that losses sustained

during the taxable year on wagering transactions shall be allowed as a deduction but

only to the extent of the gains during the taxable year from such transactions

Wagering Gains and Wagering Losses

Section 165(d) uses the words ldquogainsrdquo and ldquolossesrdquo from wagering transactions

without ascribing a technical meaning to the terms In the absence of a stated

definition to the contrary the literal language of the statute should control If the

language of a statute is plain clear and unambiguous the statutory language is to be

applied according to its terms unless a literal interpretation of the statutory language

would lead to absurd results United States v Ron Pair Enterprises Inc 489 US

235 241 (1989) Burke v Commissioner 105 TC 41 59 (1995) In ordinary

parlance a wagering ldquogainrdquo means the amount won in excess of the amount bet

(basis) See Rev Rul 83-103 1983-2 CB 148 at 149 holding that in calculating

wagering gains the cost (or basis) of the wager is excluded That is the wagering

gain is the total winnings less the amount of the wager The term wagering ldquolossrdquo

means the amount of the wager (basis) lost

Casual gamblers may deduct their wagering losses only to the extent of their

wagering gains gamblers may not carry over excess wagering losses to offset

wagering gains in another taxable year or offset non-wagering income Skeeles v

United States 118 Ct Cl 362 (1951) cert denied 341 US 948 (1951) Casual

gamblers may not net their gains and losses from slot machine play throughout the

POSTN-138904-08 4

year and report only the net amount for the year See United States v Scholl 166

F3d 964 (9th Cir 1999) 1

A key question in interpreting sect 165(d) is the significance of the term

ldquotransactionsrdquo The statute refers to gains and losses in terms of wagering

transactions Some would contend that transaction means every single play in a

game of chance or every wager made Under that reading a taxpayer would have to

calculate the gain or loss on every transaction separately and treat every play or

wager as a taxable event The gambler would also have to trace and recompute the

basis through all transactions to calculate the result of each play or wager Courts

considering that reading have found it unduly burdensome and unreasonable See

Green v Commissioner 66 TC 538 (1976) Szkirscak v Commissioner TC Memo

1980-129 Moreover the statute uses the plural term ldquotransactionsrdquo implying that gain

or loss may be calculated over a series of separate plays or wagers

The better view is that a casual gambler such as the taxpayer who plays the

slot machines recognizes a wagering gain or loss at the time she redeems her

tokens We think that the fluctuating wins and losses left in play are not accessions to

wealth until the taxpayer redeems her tokens and can definitively calculate the amount

above or below basis (the wager) realized See Commissioner v Glenshaw Glass

Co 348 US 426 (1955) For example a casual gambler who enters a casino with

$100 and redeems his or her tokens for $300 after playing the slot machines has a

wagering gain of $200 ($300 - $100) This is true even though the taxpayer may have

1 Gamblers must report wagering gains even though their losses over a tax year exceed their gains That increases a casual gamblerrsquos AGI and has a significant tax impact (especially on low income taxpayers) because many tax benefits phase out as AGI increases eg exclusion of social security payments

POSTN-138904-08 5

had $1000 in winning spins and $700 in losing spins during the course of play

Likewise a casual gambler who enters a casino with $100 and loses the entire

amount after playing the slot machines has a wagering loss of $100 even though the

casual gambler may have had winning spins of $1000 and losing spins of $1100

during the course of play2

Calculating the Taxpayerrsquos Gains and Losses

Under the facts presented the taxpayer purchased and subsequently lost $100

worth of tokens on five separate occasions As a result the taxpayer sustained $500

of wagering losses ($100 times 5) The taxpayer also sustained losses on two other

occasions when the taxpayer redeemed tokens in an amount less than the $100

(basis) of tokens originally purchased The loss is the basis of the bet ($100 in

tokens) minus the amount of the tokens eventually redeemed Therefore on the day

the taxpayer redeemed $20 worth of tokens the taxpayer incurred an $80 wagering

loss ($100-$20) On the day the taxpayer redeemed $70 worth of tokens the

taxpayer incurred a $30 wagering loss ($100-$70)

On three occasions the taxpayer redeemed tokens in an amount greater than

the $100 of tokens originally purchased The amount redeemed less the $100 basis

of the wager constitutes a wagering gain See Rev Rul 83-130 supra On the day

the taxpayer redeemed $150 worth of tokens the taxpayer had a $50 wagering gain

2 We note that sect 6041 requires gambling businesses to report payments over certain dollar amounts ldquogross receiptsrdquo reporting The amount reported as gross receipts from many types of gambling is not reduced by the amount (basis) of the wager See Rev Proc 77-29 1977-2 CB 538 However such reported payments are not necessarily taxable wagering gains A gambling business may issue an information return for a casual gamblerrsquos winning spin but the gambler continues play and wagers and loses that amount during slot machine play Wagering gain or loss is determined at the time the casual gambler redeems his or her tokens at the end of slot machine play

POSTN-138904-08 6

($150-$100) On the day the taxpayer redeemed $200 worth of tokens the taxpayer

had a $100 wagering gain ($200-$100) And on the day the taxpayer redeemed $300

worth of tokens the taxpayer had a $200 wagering gain ($300-$100)

For the year the taxpayer had total wagering gains of $350 ($50 + $100 +

$200) and total wagering losses of $610 ($500 from losing the entire basis of $100 on

five occasions + $80 and $30 from two other occasions) The taxpayerrsquos wagering

losses exceeded her wagering gains for the taxable year by $260 ($610 - $350) The

taxpayer must report the $350 of wagering gains as gross income under sect 61 Scholl

supra However under sect165(d) the taxpayer may deduct only $350 of the $610

wagering losses The taxpayer may not carry over the excess wagering losses to

offset wagering gains in another taxable year or offset non-wagering income

Skeeles supra

A casual gambler who elects to itemize deductions may deduct wagering

losses up to wagering gains on Form 1040 Schedule A In this case the taxpayer

may deduct only $350 of her $610 of wagering losses as an itemized deduction A

casual gambler who takes the standard deduction rather than electing to itemize may

not deduct any wagering losses See Rev Rul 54-339 1954-2 CB 89

CASE DEVELOPMENT HAZARDS AND OTHER CONSIDERATIONS

This writing may contain privileged information Any unauthorized disclosure of

this writing may undermine our ability to protect the privileged information If

disclosure is determined to be necessary please contact this office for our views

Please call Clifford M Harbourt at (202) 622-4800 if you have any further questions

Office of Chief CounselInternal Revenue ServiceMemorandumNumber AM2008-013Release Date 12192008

CCITAB01 - JGMEEKSPOSTN-139898-08

UILC 16508-00 16200-00

to Sara M CoeDeputy Division Counsel(Small BusinessSelf-Employed)

subject Professional Gamblers Wagering Losses and Business Expenses

This Generic Legal Advice responds to your request for assistance about a

ISSUE

Whether expenses incurred by a professional gambler to engage in the business

of gambling are subject to the limitation on deducting ldquolosses from wagering

transactionsrdquo in sect 165(d) of the Internal Revenue Code

CONCLUSION

POSTN-139898-08 2

The limitation in sect 165(d) applies only to wagering losses not to expenses

incurred to engage in the business of gambling Those business expenses are subject

to the ordinary rules governing deductibility under sect 162(a)

ANALYSIS

Statutory Provisions

gross income

Section 165(a) allows a deduction for any loss sustained during the taxable year

and not compensated for by insurance or otherwise

Section 165(c) limits an individualrsquos deduction to (1) losses incurred in a trade or

business (2) losses incurred in any transaction entered into for profit though not

connected with a trade or business and (3) certain casualty losses

Section 165(d) provides that losses from wagering transactions are allowed as

deductions only to the extent of the gains from such transactions

Section 162(a) allows a deduction for ordinary and necessary expenses paid or

incurred during the taxable year in carrying on any trade or business Section 162(a)(2)

specifies that deductible business expenses include ldquotraveling expenses (including

amounts expended for meals and lodging other than amounts which are lavish or

POSTN-139898-08 3

extravagant under the circumstances) while away from home in the pursuit of a trade or

businesshelliprdquo

Statutory Language

In applying sect 165(d) it is necessary to interpret the words ldquogainsrdquo and ldquolossesrdquo

from wagering transactions These terms are not defined in the Code regulations

legislative history or published guidance As discussed below courts have differed in

interpreting the terms

The term ldquolossrdquo is used in two different ways in the Internal Revenue Code In

sect 165 as in other deduction provisions a ldquolossrdquo is the result of an event or transaction

which caused the taxpayer to lose cash out-of-pocket or the taxpayerrsquos investment or

basis in property However the Code also uses the term ldquolossrdquo more broadly to mean a

ldquonet lossrdquo an excess of expenditures over receipts in a certain category for example a

net operating loss as defined in sect 172 The question for interpretation is essentially

which usage is intended in sect 165(d)

Section 165(d) provides that ldquolosses from wagering transactions shall be allowed

only to the extent of the gains from such transactionsrdquo The statute refers to losses from

ldquowagering transactionsrdquo not ldquowagering activityrdquo or the business of wagering or gambling

That is the statute uses the term loss in the narrow transactional sense That

meaning comports with the ordinary understanding of the phrase ldquolosses from wagering

transactionsrdquo to mean the amount of the wager (basis) lost If a wager returns less than

the amount of the wager (basis) the wagering loss equals the wager (basis) minus the

amount returned The Code regulations and legislative history do not provide another

POSTN-139898-08 4

technical definition In the absence of a stated technical definition statutory language is

accorded its common meaning See Capital Blue Cross and Subsidiaries v

Commissioner 122 TC 224 (2004) revrsquod on other grounds 431 F3d 117 (3d Cir

2005)

It is important to distinguish sect 165(d) wagering losses from (1) business

expenses specifically deductible under sect 162(a) and (2) business net operating losses

that under sect 172 may be carried over or back to offset gain in other years In both the

tax and accounting sense a (wagering) loss is not an (business) expense

Under sect 165(d) a professional gambler may use wagering losses in a year to

offset only wagering gains in that year and only up to the amount of the wagering gains

in that year and may not carry over wagering losses in excess of wagering gains to

offset income (wagering or not) in another year See Skeeles v United States 118 Ct

Cl 362 (1951) cert denied 341 US 948 (1951) See also Offutt v Commissioner 16

TC 1214 (1951) Therefore we conclude that sect 165(d) applies to only wagering losses

and does not limit the deductions allowed by sect 162(a) for a professional gamblerrsquos

business expenses 1

Supporting Cases

1 Of course a casual gambler not engaged in the trade or business of gambling would not have deductible business expenses The casual gamblerrsquos expenses to engage in gambling are nondeductible personal expenses under sect 262 Like any other taxpayer a gambler has the burden of proving that his activities rise to the level of a trade or business See Merkin v Commissioner TC Memo 2008-146

POSTN-139898-08 5

Some courts distinguish between sect 162 business expenses and sect 165 wagering

losses See Whitten v Commissioner TC Memo 1995-508 holding that

transportation meals and lodging expenses incurred to engage in gambling are not

amounts lost on bets or wagers and thus are not wagering losses subject to sect 165(d)

See also Humphrey et al v Commissioner 162 F2d 853 (1947) cert denied 332 US

817 (1948) The court explained that sect 23(h) the predecessor of sect 165(d) was a

special allowance provision enacted to conform the treatment of legal and illegal

gambling The court held that ldquoEach lettered paragraph [sect 23(h)] authorizes a class of

deductions Wagering losses are made [by sect 23(h)] a class to themselves and lsquoshall be

allowed as deductionsrsquo but lsquoonly to the extent of gains from such transactionsrsquohelliprdquo 162

F2d at 855 The court correctly described the statutory scheme before and after the

enactment of sect 23(h) now sect 165(d) Wagering losses are not deductible business

expenses wagering losses are a separate class of expenditures deductible under a

special allowance provision sect 165(d)

Admittedly other courts have viewed business expenses as ldquolosses from

wagering transactionsrdquo subject to the sect 165(d) limitation on deductibility See the

OffuttTodisco line discussed below We think that line of cases fundamentally

misconstrued the relationship between sect 165 losses and sect 162 expenses More

importantly the cases are inconsistent with the Supreme Courtrsquos view of the scope of

those statutes

In Commissioner v Groetzinger 480 US 23 (1987) the Court held that a full-

time gambler who makes wagers for his own account may be engaged in a ldquotrade or

businessrdquo under sect 162(a) The Court considered the trade or business of gambling to

POSTN-139898-08 6

be like any other trade or business for which a taxpayer may deduct qualified business

expenses under sect 162 Groetzinger at 33 The Court did not define business expenses

as wagering losses subject to the sect 165(d) limitation on deductibility The Court

necessarily rejected the reading of sect 165(d) as covering business expenses because

such a reading would presume all of a professional gamblerrsquos business expenses are

limited by sect 165(d) and would preclude the possibility of the sect 162 business expense

contemplated by the Court

Prior to Groetzinger the Service distinguished wagering losses subject to

sect 165(d) from sect 162 expenses and Groetzinger neither addressed nor disturbed the

existing administrative position Rev Rul 54-219 1954-1 CB 51 holds that payments

for the federal excise tax on wagers and the special tax paid by persons engaged in

receiving wagers are deductible as ordinary and necessary business expenses The

wagering tax is imposed on the wagering activity or business of gambling without regard

to the outcome of specific wagering transactions In Commissioner v Sullivan 356 US

27 (1958) citing the conclusion in Rev Rul 54-219 that a gambling enterprise is a

business for federal tax purposes the Court held that amounts incurred for rent and

salaries in the conduct of a gambling enterprise were deductible as ordinary and

necessary business expenses The Court noted that ldquo[t]he policy that allows as a

deduction the tax paid to conduct the business seems sufficiently hospitable to allow the

normal deductions [for business expenses] of the rent and wages necessary to operate

itrdquo Sullivan at 29 Neither Rev Rul 54-219 nor Sullivan applied sect 165(d) [or its

predecessors] to restrict the deductibility of ordinary and necessary expenses incurred

POSTN-139898-08 7

to engage in the business of gambling Rather each treated the business expenses as

independently deductible under sect 162(a)

Contrary Cases

In Offutt v Commissioner 16 TC 1214 (1951) the Tax Court upheld the

Servicersquos position that a bookmaker could not deduct wagering losses against non-

gambling income Unfortunately without explanation the court also characterized

certain business expenses (mailing printing and stenographic expenses) as wagering

losses Citing Offutt several courts subsequently adopted that characterization and

applied the sect 165(d) limitation to the sum of a gamblerrsquos wagering losses and business

expenses See Estate of Todisco v Commissioner 757 F 2d 1 (1st Cir 1985) affg

TC Memo 1983-247 Kozma v Commissioner TC Memo 1986-177 Valenti v

Commissioner TC Memo 1994-483 Kochevar v Commissioner TC Memo 1995-

607 and Praytor v Commissioner TC Memo 2000-282

We recognize that the Service has not always been consistent in litigating

sect 165(d) cases Compare Whitten with Kochevar 2 However for the reasons stated

above we conclude that the Service should not follow the OffuttTodisco line of cases

Rather the Service should apply sect 165(d) consistently with the Supreme Courtrsquos

decisions in Sullivan and Groetzinger as well as Rev Rul 54-219 That is sect 165(d)

applies to only wagering losses not to expenses incurred to engage in the business of

2 More recently the Commissioner conceded that a professional gamblerrsquos expenses were deductible under sect 162(a) and not subject to the sect 165(d) limitation on deducting wagering losses Tschetschot v Commissioner TC Memo 2007-38

POSTN-139898-08 8

wagering or gambling Expenses incurred to engage in the trade or business of

gambling are deductible to the extent allowed under sect 162(a)

Examples

The following formula applies in the examples below

Schedule C

Wagering gains- Wagering losses as limited by sect 165(d)Wagering income

- Business expensesBusiness income or loss agrave Form 1040

Business income or loss (Form 1040 line 12)+ Additional income (Form 1040 lines 7-21)

Total Income (Form 1040 line 22)

Situation 1 A is a professional gambler engaged in the trade or business of

playing poker Gambling is Arsquos sole occupation A is not employed and has no other

income Throughout the year A traveled to various casinos and other venues where

gambling is legal to participate in poker tournaments At the end of the year A had total

wagering gains of $100000 total wagering losses of $75000 and incurred $15000 in

business expenses for transportation meals and lodging

A must report the $100000 of wagering gains as gross receipts Under sect 165(d)

A may subtract $75000 of wagering losses from the $100000 of gross receipts

resulting in $25000 of wagering income Under sect 162(a)(2) A may then deduct

$15000 in business expenses from the $25000 of wagering income resulting in

$10000 of business income

POSTN-139898-08 9

Situation 2 Assume the same facts as Situation 1 except that B also had

$10000 of (taxable) investment income B must report the $100000 of wagering gains

as gross receipts Under sect 165(d) B may subtract $75000 of wagering losses from the

$100000 of gross receipts resulting in $25000 of wagering income Under

sect 162(a)(2) B may then deduct $15000 in business expenses from the $25000 of

wagering income resulting in $10000 of business income B also must report the

$10000 of investment income as gross income under sect 61 B therefore has $20000 of

total income ($10000 business income + $10000 investment income)

Situation 3 C is a professional gambler engaged in the trade or business of

playing poker Gambling is Crsquos sole occupation C is not employed and has no other

income Throughout the year C traveled to various casinos and other venues where

gambling is legal to participate in poker tournaments At the end of the year C had total

C must report the $75000 of wagering gains as gross receipts Under sect 165(d)

C may deduct wagering losses to the extent of wagering gains Therefore C may

subtract only $75000 of his $100000 of wagering losses from gross receipts

completely offsetting his $75000 of gross receipts C may not carry over the excess

$25000 of (unused) wagering losses to offset wagering gains or other (non-wagering)

income in another taxable year Under sect 162(a)(2) C may then deduct the $15000

business expense without regard to sect 165(d) resulting in a net operating loss of

$15000 C may carry that $15000 net operating loss over or back to another year

under sect 172(b)

POSTN-139898-08 10

Situation 4 Assume the same facts as Situation 3 except that D also had

$10000 of (taxable) investment income D must report the $75000 of wagering gains

as gross receipts Under sect 165(d) D may deduct wagering losses to the extent of

wagering gains Therefore D may subtract only $75000 of his $100000 of wagering

losses from gross receipts completely offsetting his $75000 of gross receipts D may

not carry over the excess $25000 of (unused) wagering losses to offset wagering gains

or other (non-wagering) income in another taxable year Under sect 162(a)(2) D may then

deduct the $15000 business expense without regard to sect 165(d) resulting in a

business loss of $15000 from gambling D must also report the $10000 of investment

income as gross income under sect 61 resulting is a net operating loss of $5000 ($10000

investment income - $15000 business loss) D may carry this $5000 net operating

loss over or back to another year under sect 172(b)

this writing may undermine our ability to protect the privileged information If disclosure

is requested please contact this office for our views

Please call Justin G Meeks at (202) 622-5020 if you have any further questions

Taxation of the Gambler Exhibits ALLpdf
- 01 Deal with it The Gambler
- 02 Deal With It The Gambler Exhibits
- 03 Exhibit_2009_IRS_Form_1040
- 04 Exhibit 2009_IRS_Form_1040_Instructions Page 11
- 07 Exhibit 2009_IRS_Schedule_A
- 08 Exhibit 2009_IRS_Schedule_A_Instructions Page A-11
- 09 Exhibit 2009_IRS_Schedule_C
- 10 Exhibit 2010_IRS_Form_W-2G Page 04
- 11 Exhibit 2010_IRS_Form_5754_rev_Dec_2008
- 12 Exhibit 2010_IRS_Form_1099-MISC
- 13 Exhibit 2003_FinCEN_Form_102_SARC
- 14 Exhibit IRS Revenue Procedure 77-29
- 15 Exhibit IRS-Chief-Counsel-Advice-Memo-2008-011
- - POSTN-138904-08_WLI01doc

Page 2: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

L A B E L

H E R E

Form 1040 Department of the TreasurymdashInternal Revenue Service

US Individual Income Tax Return 2009 (99) IRS Use OnlymdashDo not write or staple in this space

Label (See instructions on page 14)

Use the IRS label

Otherwise please print or type

For the year Jan 1ndashDec 31 2009 or other tax year beginning 2009 ending 20 OMB No 1545-0074

Your first name and initial Last name Your social security number

If a joint return spousersquos first name and initial Last name Spousersquos social security number

Home address (number and street) If you have a PO box see page 14 Apt no para

You must enter your SSN(s) above para

City town or post office state and ZIP code If you have a foreign address see page 14 Checking a box below will not change your tax or refund

Presidential Election Campaign copy Check here if you or your spouse if filing jointly want $3 to go to this fund (see page 14) copy You Spouse

Filing Status

Check only one box

1 Single

2 Married filing jointly (even if only one had income)

3 Married filing separately Enter spousersquos SSN above and full name here copy

4 Head of household (with qualifying person) (See page 15) If the

qualifying person is a child but not your dependent enter this

childrsquos name here copy

5 Qualifying widow(er) with dependent child (see page 16)

Exemptions

If more than four dependents see page 17 and check here copy

6a Yourself If someone can claim you as a dependent do not check box 6a

b Spouse Boxes checked on 6a and 6b

c Dependents

(1) First name Last name

(2) Dependentrsquos social security number

(3) Dependentrsquos relationship to you

(4) if qualifying child for child tax

credit (see page 17)

No of children on 6c who lived with you did not live with you due to divorce or separation (see page 18)

Dependents on 6c not entered above

d Total number of exemptions claimed Add numbers on lines above copy

Income

Attach Form(s) W-2 here Also attach Forms W-2G and 1099-R if tax was withheld

If you did not get a W-2 see page 22

Enclose but do not attach any payment Also please use Form 1040-V

7 Wages salaries tips etc Attach Form(s) W-2 7

8a Taxable interest Attach Schedule B if required 8a

b Tax-exempt interest Do not include on line 8a 8b

9 a Ordinary dividends Attach Schedule B if required 9a

b Qualified dividends (see page 22) 9b

10 Taxable refunds credits or offsets of state and local income taxes (see page 23) 10

11 Alimony received 11

12 Business income or (loss) Attach Schedule C or C-EZ 12

13 Capital gain or (loss) Attach Schedule D if required If not required check here copy 13

14 Other gains or (losses) Attach Form 4797 14

15 a IRA distributions 15a b Taxable amount (see page 24) 15b

16 a Pensions and annuities 16a b Taxable amount (see page 25) 16b

17 Rental real estate royalties partnerships S corporations trusts etc Attach Schedule E 17

18 Farm income or (loss) Attach Schedule F 18

19 Unemployment compensation in excess of $2400 per recipient (see page 27) 19

20 a Social security benefits 20a b Taxable amount (see page 27) 20b

21 Other income List type and amount (see page 29) 21 22 Add the amounts in the far right column for lines 7 through 21 This is your total income copy 22

Adjusted Gross Income

23 Educator expenses (see page 29) 23

24 Certain business expenses of reservists performing artists and fee-basis government officials Attach Form 2106 or 2106-EZ 24

25 Health savings account deduction Attach Form 8889 25

26 Moving expenses Attach Form 3903 26

27 One-half of self-employment tax Attach Schedule SE 27

28 Self-employed SEP SIMPLE and qualified plans 28

29 Self-employed health insurance deduction (see page 30) 29

30 Penalty on early withdrawal of savings 30

31 a Alimony paid b Recipientrsquos SSN copy 31a

32 IRA deduction (see page 31) 32

33 Student loan interest deduction (see page 34) 33

34 Tuition and fees deduction Attach Form 8917 34

35 Domestic production activities deduction Attach Form 8903 35

36 Add lines 23 through 31a and 32 through 35 36 37 Subtract line 36 from line 22 This is your adjusted gross income copy 37

For Disclosure Privacy Act and Paperwork Reduction Act Notice see page 97 Cat No 11320B Form 1040 (2009)

Form 1040 (2009) Page 2

Tax and Credits

Other Taxes

copy

d Account number

Phone no copy

copy EIN

Phone no

Form 1040 (2009)

(box 12 code W)

- 10 -

- 11 -

Itemized Deductions

OMB No 1545-0074

Taxes You Paid

(See page A-2)

5

(See page A-10)

and amount copy23

copy 29

Before you begin

5

line 29 12

A-11

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 3: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Form 1040 (2009) Page 2

Tax and Credits

Other Taxes

copy

d Account number

Phone no copy

copy EIN

Phone no

Form 1040 (2009)

(box 12 code W)

- 10 -

- 11 -

Itemized Deductions

OMB No 1545-0074

Taxes You Paid

(See page A-2)

5

(See page A-10)

and amount copy23

copy 29

Before you begin

5

line 29 12

A-11

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 4: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

(box 12 code W)

- 10 -

- 11 -

Itemized Deductions

OMB No 1545-0074

Taxes You Paid

(See page A-2)

5

(See page A-10)

and amount copy23

copy 29

Before you begin

5

line 29 12

A-11

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 5: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

- 11 -

Itemized Deductions

OMB No 1545-0074

Taxes You Paid

(See page A-2)

5

(See page A-10)

and amount copy23

copy 29

Before you begin

5

line 29 12

A-11

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 6: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Itemized Deductions

OMB No 1545-0074

Taxes You Paid

(See page A-2)

5

(See page A-10)

and amount copy23

copy 29

Before you begin

5

line 29 12

A-11

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 7: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Itemized Deductions

OMB No 1545-0074

Taxes You Paid

(See page A-2)

5

(See page A-10)

and amount copy23

copy 29

Before you begin

5

line 29 12

A-11

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 8: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Before you begin

5

line 29 12

A-11

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 9: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

line 29 12

A-11

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 10: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

OMB No 1545-0074

copy

1

12 Depletion 12

16 Interest

b Other 16b

a Travel 24a

25 Utilities 25

31

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 11: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

39 Other costs 39

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 12: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

OMB No 1545-0238

2010Form W-2G

Records

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 13: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

5754

Machine number

Game number

Type of winnings

Date won

Address

Name

Amount received

Other ID

(d) Amount won

(c) Address

(a) Name

Date copy

Signature copy

Cat No 12100R

Form 5754 (Rev 12-2008)

Part I

Part II

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 14: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Page 2

(d) Amount won

(c) Address

(a) Name

Part II

Form 5754 (Rev 12-2008)

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 15: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

11 12

$2 Royalties

$Other income3

18 State income

$

$$ $

4

$ $

Form 1099-MISC

MiscellaneousIncome

$

Copy BFor Recipient

$ $

2010

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 16: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 17: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

FinCEN Form 102

16 Date of birth

_____________ MM DD YYYY

8 Address

10 State

No

______________ MM DD YYYY

From ___________________ MM DD YYYY

To ___________________ MM DD YYYY

MM DD YYYY

9 City

11 ZIP code

( )

$ 00

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 18: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

35 Address

( ) _______________ MM DD YYYY

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 19: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 20: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 21: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 22: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 23: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

Revenue Procedure

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 24: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 25: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

UILC 16508-00 6100-00

ISSUE

machine play

FACTS

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 26: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-138904-08 2

Proc 77-29 1977-2 CB 538

cash $20 $70 $150 $200 and $300

ANALYSIS

1295 (1982)

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 27: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-138904-08 3

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 28: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-138904-08 4

F3d 964 (9th Cir 1999) 1

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 29: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-138904-08 5

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 30: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-138904-08 6

Skeeles supra

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 31: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

UILC 16508-00 16200-00

ISSUE

CONCLUSION

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 32: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 2

ANALYSIS

gross income

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 33: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 3

businesshelliprdquo

Statutory Language

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 34: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 4

2005)

business expenses 1

Supporting Cases

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 35: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 5

those statutes

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 36: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 6

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 37: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 7

Contrary Cases

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 38: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 8

Examples

Schedule C

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 39: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 9

under sect 172(b)

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 40: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

POSTN-139898-08 10

- - POSTN-138904-08_WLI01doc

Page 41: Taxation of the Gambler.ppt - TCOSCPA - Taxation of the Gambler - TS-OSCPA - Handout.pdfTaxation of the Gambler Exhibits IRS Form 1040 U.S. Individual Income Tax Return IRS Form 1040

- - POSTN-138904-08_WLI01doc

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