- 13 -
also prove that the amount of such wagering losses claimed
as a deduction does not exceed the amount of the taxpayer's
gains from wagering transactions. See sec. 165(d).
Implicitly, this requires the taxpayer to prove both the
amount of his losses and the amount of his winnings. See
Schooler v. Commissioner, 68 T.C. 867, 869 (1977); Donovan
v. Commissioner, T.C. Memo. 1965-247, affd. per curiam 359
F.2d 64 (1st Cir. 1966). Otherwise, there can be no way of
knowing whether the sum of the losses claimed on the return
is greater or less than the taxpayer's winnings. See
Schooler v. Commissioner, supra at 869. For example, if
the taxpayer, in addition to the winnings reported on his
or her return, received other winnings that were not
reported, then the taxpayer must prove that the losses
claimed in his or her return exceeded the unreported
winnings in order to be entitled to deduct any such losses.
See id.; Donovan v. Commissioner, supra. The amount
deductible in this situation is the amount of the claimed
losses which exceeds the unreported winnings, as long as
such excess is less than the winnings reported on the
taxpayer's return. See sec. 165(d); Schooler v. Commis-
sioner; supra; Donovan v. Commissioner, supra.
In this case, the "racetrack" winnings reported on
petitioner's 1991 return, $21,379, exceed the "gambling"
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011