Dr Green Tax Memo

MEMORANDUM TO: Dr. Green FROM: DATE: September 26, 2010 RE: visit Memo #1 / Gambling Activities Issue & Facts Dr. Green is a practicing physician in Chicago who, as an avid northern pin oak and slot mould player, travels to Las Vegas every other weekend to gamble. He would like to kip down what criteria argon used to put whether his childs play activities constitute a wad or contagious disease line for national income tax purposes and whether or not his frolic activities qualify for trade or course status. Applicable slip Law, Code & Regulations The Internal Revenue avail (IRS) and the Unites States Tax accost provide guidance on whether gaming activities constitute a trade or worry for federal income tax purposes. In general, where the taxpayer does not spend the majority of their clock dedicated to the legal action, gambling is not recognized as a trade or business. IRS Fact Sheet FS-2007-18 clarifies the determining fac tors on what constitutes a business body process: Does the time and effort redact into the activity portend an intention to make a shekels? Does the taxpayer depend on income from the activity? If there are losses, are they due to mickle beyond the taxpayers control or did they occur in the start-up phase of the business?

Has the taxpayer changed methods of operation to advance profitability? Does the taxpayer or his/her advisors have the knowledge needed to aim on the activity as a successful business? Has the taxpayer made a profit in similar a ctivities in the past? Does the a! ctivity make a profit in some age? Can the taxpayer expect to make a profit in the future from the appreciation of assets used in the activity? In deciding Donald and Denise Hastings v. Commissioner of Internal Revenue, the Tax Court control that occasional and weekend activity does not indicate a profit objective. and, therefore is not provided with trade or business...If you pauperization to get a full essay, fix up it on our website: BestEssayCheap.com

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