- 4 - taxpayer is carrying on a trade or business requires an examination of all the facts in each case. Higgins v. Commissioner, 312 U.S. 212, 217 (1941). Petitioner’s gambling activity in 1998 consisted of playing the slot machines in Iowa on approximately 66 days during the 274-day period from January to September 1998, and taking two short trips to Nevada where she also played the slot machines. Prior to commencing the activity, petitioner did not consult with any professional gamblers or do any research concerning professional gambling. She did not know whether she was required to have a professional gambling license. Petitioner claims that she kept records of her winnings and losses in a notebook; she, however, destroyed those records when she abandoned the gambling activity in the fall of 1998. The only records of her activity are credit card statements showing cash advances at the casinos that she visited and casino records from the Mississippi Belle II. We do not find that petitioner’s activity was continuous or regular, and, while petitioner certainly desired to win money, she did not engage in the activity for the primary purpose of income and profit. Indeed, for example, the destruction of her records cuts across the suggestion that she considered herself to be in the trade or business of gambling. Rather, petitioner’s activity more resembles a diversion than a professionalPage: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011