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gambling. The $4,000 reported on the return represented an
amount for which the casino had issued an IRS Form 1099 to Mrs.
Lavigne for a larger than normal payoff from a slot machine.
Mrs. Lavigne admitted she had other winnings during the course of
the year for which no Forms 1099 were issued; however, no records
were maintained by her for such winnings. Mrs. Lavigne was
satisfied that her losses exceeded $4,000 during 1999. The only
records submitted at trial to establish her losses consisted of a
bank statement of Mrs. Lavigne's account reflecting various
withdrawals that she contends substantiated her gambling losses.
Section 165(d) allows taxpayers to deduct losses from
wagering transactions to the extent of the gains from such
transactions. In order to establish entitlement to a deduction
for wagering losses in this Court, the taxpayer must prove the
losses sustained during the taxable year. Mack v. Commissioner,
429 F.2d 182 (6th Cir. 1970), affg. T.C. Memo. 1969-26; Stein v.
Commissioner, 322 F.2d 78 (5th Cir. 1963), affg. T.C. Memo. 1962-
19. The taxpayer must 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. Sec. 165(d).
Implicitly, this requires the taxpayer to prove both the amount
of losses and the amount of winnings. 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).
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