Student’s Name Professor’s Name Course Date Tax Law ABSTRACT In the case of Tschetschot v. Commissioner (2007) the court determined that poker tournaments are gambling activities that are regulated under section 165(d) of the Internal Revenue Code. The court said that the losses made in poker could only be deductible from poker winnings. The opinion of the court was that poker is a wagering game and conducting it in tournament atmosphere did not make it a game. Code §165(d) therefore limited the tax deduction of poker losses only to the previous poker winnings. The court argued that poker losses could not be deducted from other sources of income since it is a wagering activity and not a business or trade. The court added that only professional gamblers which could prove that gambling was their only source of income were allowed to claim poker losses as deductions from other profits tournament poker into gambling activities as regulated under Code §165(d). I agree with the court’s decision since gambling cannot be separated from poker. All the elements of gaming such as consideration chance and prize are also present in tournament poker. REFERENCES ARMEN Special Trial Judge. "FINDINGS OF FACT." Gaming Law Review 11.6 (2007). Everett John O. Cherie J. Hennig and Nancy Nichols. Contemporary Tax Practice: Research Planning and Strategies. CCH 2008. Gordon Donald H. "The Public Policy Limitation on Deductions from Gross Income: A Conceptual Analysis." Ind. LJ 43 (1967): 406. Kelly Joseph M. Zeeshan Dhar and Thibault Verbiest. "Poker and the law: is it a game of skill or chance and legally does it matter?." Gaming law review 11.3 (2007): 190-202. Tax Court Memoranda (Archive) George E. and Gloria Tschetschot v. Commissioner. U.S. Tax Court CCH Dec. 56 840(M) T.C. Memo. 2007-38 93 T.C.M. 914 (Feb. 20 2007) [...]
The issue for your paper is whether tournament poker losses are limited by Internal Revenue Code section 165(d) to the amount of gambling winnings or is tournament poker different from other wagering activities since it is conducted similarly to other professional sport tournaments. Note that this is NOT about the standard to be considered a professional gambler.