Jose Calvao - Page 7

                                        - 7 -                                         
               to be engaged in a trade or business, the taxpayer must                
               be involved in the activity with continuity and                        
               regularity and * * * the taxpayer’s primary purpose for                
               engaging in the activity must be for income or profit.                 
               A sporadic activity, a hobby, or an amusement diversion                
               does not qualify.  * * *                                               
                         *    *    *    *    *    *    *                              
               we conclude that if one’s gambling activity is pursued                 
               full time, in good faith, and with regularity, to the                  
               production of income for a livelihood, and is not a                    
               mere hobby, it is a trade or business within the                       
               meaning of the statutes with which we are here                         
               concerned. * * *                                                       
          Id. at 35-36.  The Supreme Court affirmed the judgment of the               
          Court of Appeals for the Seventh Circuit, finding the taxpayer              
          was engaged in the trade or business of gambling.  Id. at 36.               
               Petitioner argues the facts of Groetzinger are similar to              
          the facts of this case, and, like the Supreme Court in                      
          Groetzinger, we should find petitioner was engaged in the trade             
          or business of gambling.  After carefully considering the facts             
          in this case, we disagree.                                                  
               Petitioner argues, like the taxpayer in Groetzinger, he                
          spent a substantial amount of time preparing for his trips to the           
          casino and developed a strategy for his gambling:                           
               In 2002, the petitioner went to the casino with a plan.                
               The petitioner would first talk to the casino hosts to                 
               find out which areas of the casino were heavily played                 
               and what slot machines were/were not hitting.  Based                   
               upon the information, the petitioner then determined                   
               what slot machines he was going to play and how much                   
               money he would need.                                                   
               In 2002, the petitioner set a limit for his losses each                
               day that he went to the casino.  The petitioner also                   





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011