Dr Green Tax Memo

MEMORANDUM TO: Dr. Green FROM: DATE: September 26, 2010 RE: chatter Memo #1 / Gambling Activities Issue & Facts Dr. Green is a practicing physician in Chicago who, as an avid squeeze and slot mould player, travels to Las Vegas every other weekend to gamble. He would like to kip down what criteria argon used to limit whether his childs play activities constitute a wad or contagion line for national income tax purposes and whether or not his free rein activities qualify for trade or course status. Applicable episode Law, Code & Regulations The Internal Revenue avail (IRS) and the Unites States Tax greet provide guidance on whether sport activities constitute a trade or origin for federal income tax purposes. In general, where the taxpayer does not spend the majority of their clock dedicated to the bodily function, gambling is not recognized as a trade or business. IRS Fact Sheet FS-2007-18 clarifies the determining factors o n what constitutes a business application: Does the time and effort redact into the activity shew an intention to make a shekels? Does the taxpayer depend on income from the activity? If there are losses, are they due to fate 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 activities in the past? Does the activity make! a profit in some eld? 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 govern that occasional and weekend activity does not indicate a profit objective. and, therefore is not provided with trade or business...If you emergency to get a full essay, fix up it on our website: BestEssayCheap.com

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