Andrea McQuarrie - Page 5

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          deductions, she may not deduct any gambling losses.  See Torpie             
          v. Commissioner, T.C. Memo. 2000-168.                                       
               Petitioner credibly testified, and we have so found, that              
          her gambling losses exceeded her gambling winnings in 2003.                 
          However, because petitioner was not engaged in the trade or                 
          business of gambling, she would have to forgo the standard                  
          deduction to deduct her gambling losses as an itemized deduction.           
          See sec. 63(a) and (b); Torpie v. Commissioner, supra.                      
          Petitioner’s standard deduction ($7,000) exceeds her potential              
          itemized deduction for gambling losses ($2,800).4  Thus,                    
          petitioner’s election to take the standard deduction resulted in            
          a larger deduction than had she taken an itemized deduction for             
          her gambling losses.  Because petitioner elected to take the                
          standard deduction, we hold that she cannot take an itemized                
          deduction for her gambling losses to offset her gambling                    
          winnings.  See sec. 63(a) and (b); Torpie v. Commissioner, supra.           
               The final issue for decision is whether any portion of                 
          petitioner’s Social Security disability benefits are includable             
          in her gross income for 2003.  Respondent determined that $914 of           
          petitioner’s benefits are so included.                                      
               Section 86(a) requires the inclusion of a portion of Social            
          Security benefits in gross income when the sum of the taxpayer’s            


               4  Petitioner presented no evidence that she was entitled to           
          other itemized deductions beyond that for her gambling losses.              




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