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Message: [QUOTE="WEC, post: 1946291, member: 31731"] This is interesting as well for someone trying to file as professional gambler [U]Moore v. Commissioner, T.C. Memo 2011-173[/U] To his 2006 tax return, Moore attached a Schedule C and filed as a “pro gambler,” claiming zero “net” gambling winnings (Moore reported $25,534 of wagering losses), and $15,455 of assorted business expenses, reflecting an overall business loss of $15,455. The IRS challenged Moore’s professional gambler status, taking the position that he could not claim the business loss, and that he must itemize his wagering losses of $25,534 on Schedule A.... Because the IRS first raised the professional gambler status issue in its answer, the burden of proof was on the IRS to prove that Moore was not a professional gambler. Accordingly, the IRS was required to demonstrate that Moore did not gamble with the intent to profit. Here are the factors the court considered to make its analysis: [LIST] [*]Manner in which the taxpayer carries on the activity; [*]The expertise of the taxpayer or his advisors; [*]The time and effort expended by the taxpayer in carrying on the activity; [*]Expectation that assets used in activity may appreciate in value; [*]The success of the taxpayer in carrying on other similar or dissimilar activities; [*]The taxpayer’s history of income or losses with respect to the activity; [*]The amount of occasional profits, if any, which are earned; [*]The financial status of the taxpayer; and [*]Elements of personal pleasure or recreation. [/LIST] From the evidence presented, the decision was easy for the court to make. He didn’t keep records of his gambling activity. Big mistake. [B]Also, he had never profited from gambling, and did not seek possible ways to improve upon his performance.[/B] This case is informative for a taxpayer who asks the question: Can I file as a professional gambler? Remember, a taxpayer doesn’t have a choice. It’s a matter of whether he/she can show that the above factors as applied to particular facts and circumstances demonstrate one engaged in gambling for profit. [url]http://taxdood.com/2011/07/18/professional-v-recreational-gambler-status-in-tax-court/[/url] [/QUOTE]

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