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wins and losses to establish the hours spent gambling. The
schedule of gambling wins and losses reflects petitioner’s
attempt to reconstruct the dates he gambled, the amount of money
won or lost, and the amount of time spent gambling each day.
However, the schedule was not provided to respondent until
January 4, 2006, and there is no evidence in the record
indicating when the schedule was prepared. This evidence was not
contemporaneously maintained, and it is inaccurate and
unreliable.7 Petitioner did not provide his purported daily
records, nor did he provide other evidence corroborating the
amount of time he devoted to gambling during 2002. Given the
lack of reliable evidence, we cannot determine how much time
petitioner devoted to gambling during 2002.
Unlike the taxpayer in Groetzinger, petitioner spent
approximately 20 to 25 hours per week working for Caltex.
Additionally, petitioner’s livelihood did not depend on playing
the slot machines. His primary income came from his salary of
$42,000 and the passthrough of income of $99,790 from Caltex, of
which he was president and 100-percent owner during 2002. By
7 For example, the schedule of gambling wins and losses
indicates petitioner spent 18 days gambling during March 2002,
during which he won $9,700 and lost $27,900. However, the
gambling summary prepared by petitioner for use in filing his
2002 return indicates petitioner gambled on only 2 days during
March 2002, during which time he won $9,700 but lost $31,300.
Additionally, the Forms W-2G issued to petitioner for payouts
made during March 2002 indicate petitioner won only $8,100.
Similar discrepancies appear in other months.
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