Thomas N. Coccia - Page 8

                                        - 7 -                                         
          compensation of $1,024.2  Petitioner did not present any argument           
          that these amounts are not includable in income.  The Court                 
          therefore concludes that petitioner is required to include these            
          amounts in income.                                                          
               While petitioner does not dispute that his gambling winnings           
          should be included in his income, he does assert that his                   
          gambling winnings should be offset by his 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                   
          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.                

               2Pursuant to sec. 6211(b)(1), petitioner's withheld tax on             
          wages of $10,289 is not taken into consideration in determining             
          the deficiency.  It is, however, applied in calculating the                 
          amount required to be paid.  Sec. 31(a)(1).  The addition to tax            
          under sec. 6651(a) is calculated on the net amount of tax due.              
          Sec. 6651(b)(1).                                                            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011