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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 professional
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