Here is a DC Circuit appellate ruling from 2013 (you may recognize the name of the Judge) that upholds the per-session limit on netting out wins and losses (the IRS actually wanted to tax every winning bet on this poor guy).
This rule against netting wins and losses for the year is well established. See Schollenberger v. Commissioner (US Tax Court):
"To permit a casual gambler to net all wagering gains or losses throughout the year would intrude upon, if not defeat or render superfluous, the careful statutory arrangement that allows deduction of casual gambling losses, if at all, only as itemized deductions, subject to the limitations of section 165(d)."
Cogno
From: vpFREE@yahoogroups.com <vpFREE@yahoogroups.com>
Sent: Thursday, March 21, 2019 7:31 PM
To: vpFREE@yahoogroups.com
Subject: [vpFREE] Re: Re: Tax question number 1,565,876
My point is that "the law" is not absurd at all-it taxes winning in a calendar year. If you have no winnings over the calendar year, and you can prove it with a diary and legitimate casino records, you have no winnings.
Another poster states there is "plenty" of citation evidence supporting. As a lawyer I would like to see just ONE tax law appellate case upholding such a bizarre result! Using such logic that a single bet is a "winning" if one were to make 100 $100 bets on "Player" in Baccarat, win 50, lose 50, one would have made zero profit but would have to report $5000 in "winnings" on Line 21. That is, like taxing slot machine handpays when one has proof he has lost money over the year, is simply not an interpretation any appellate court would entertain- in my opinion.
Posted by: Cogno Scienti <cognoscienti@hotmail.com>
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