- 14 -
Cohan v. Commissioner, 39 F.2d 540, 544 (2d Cir. 1930). In order
to do so, however, we must have some basis in fact upon which an
estimate can be made, Vanicek v. Commissioner, 85 T.C. 731, 743
(1985); otherwise, any allowance would amount to unguided
largesse, Williams v. United States, 245 F.2d 559, 560 (5th Cir.
1957). Here, however, we have no basis whatsoever on which to
make a reasonable estimate. Accordingly, we sustain respondent's
determination on this issue.
Issue (4): Gambling Loss - 1993
Petitioner claimed a deduction for a gambling loss in the
amount of $5,000 on his Schedule A for 1993.
Petitioner contends that he lost money gambling in 1993 and
is therefore entitled to deduct his loss. Respondent contends,
inter alia, that because petitioner did not report any gambling
winnings in 1993, petitioner is not entitled to deduct any
gambling loss for that year. We agree with respondent.
Section 165(d) provides for a deduction for losses from
gambling transactions but only to the extent of gains from such
transactions. Sec. 165(d); sec 1.165-10, Income Tax Regs. In
other words, a taxpayer is not entitled, as a matter of law, to
deduct a net gambling loss. Therefore, because petitioner did
not report any gambling winnings on his income tax return for
1993, he is not entitled to any deduction for a gambling loss in
that year.
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