Frank J. Wilson is a part-time CPA earning wages of $80,000 annually. Mr. Wilson is also a professional blackjack player whose gambling activities rise to the level of a trade or business. In some years he’s won a lot of money (over $1 million in winnings once), and in others he’s lost a lot of money. This year, Mr. Wilson generated $25,000 in winnings and $216,000 playing blackjack. Mr. Wilson keeps meticulous records of his gains, losses and expenses. Besides gambling winnings and losses described above, this year Mr. Wilson also incurred $15,000 in ordinary business expenses in conducting his gambling business (mainly, compensation for a part-time secretary). The casinos picked up his meals, entertainment, and room costs of $150,000, that is, he was “comped” for these cost Issue 1: In 2020, to what extent are the losses and expenses related to Mr. Williams’ gambling deductibl Issue 2: If the year were 2015, would your answer to Issue 1 chang Please answer the question based on the facts and issu 1) Give a simple, nontechnical 1 sentence answer to the question pose 2) What is (are) the Code section(s) at issu 3) Are any Treasury Regulations relevan 4) List the case/ruling authority on which you relied to arrive at your answer (please provide the name of any case, not just a citation ).t?e?d.e:e?e?s.t a citation).
Frank J. Wilson is a part-time CPA earning wages of $80,000 annually. Mr. Wilson is also a professional blackjack player whose gambling activities rise to the level of a trade or business. In some years he’s won a lot of money (over $1 million in winnings once), and in others he’s lost a lot of money. This year, Mr. Wilson generated $25,000 in winnings and $216,000 playing blackjack.
Mr. Wilson keeps meticulous records of his gains, losses and expenses. Besides gambling winnings and losses described above, this year Mr. Wilson also incurred $15,000 in ordinary business expenses in conducting his gambling business (mainly, compensation for a part-time secretary). The casinos picked up his meals, entertainment, and room costs of $150,000, that is, he was “comped” for these cost
Issue 1: In 2020, to what extent are the losses and expenses related to Mr. Williams’ gambling deductibl
Issue 2: If the year were 2015, would your answer to Issue 1 chang
Please answer the question based on the facts and issu
1) Give a simple, nontechnical 1 sentence answer to the question pose
2) What is (are) the Code section(s) at issu
3) Are any Treasury Regulations relevan
4) List the case/ruling authority on which you relied to arrive at your answer (please provide the name of any case, not just a citation
).t?e?d.e:e?e?s.t a citation).
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