Michael Ferguson - Page 3

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          is not reviewable by any other court, and this opinion should not           
          be cited as authority.                                                      
               Respondent determined a deficiency in petitioner’s Federal             
          income tax for 2003 of $3,068.  Petitioner timely filed a                   
          petition with the Court.  The sole issue for decision is whether            
          petitioner’s gambling activity constituted a trade or business              
          under section 162 and, consequently, whether he was a                       
          professional gambler in 2003.                                               
                                     Background                                       
               Some of the facts have been stipulated, and they are so                
          found.  We incorporate by reference the parties’ stipulation of             
          facts at trial and accompanying exhibits.                                   
               At the time the petition was filed, petitioner resided in              
          Berwyn, Illinois.                                                           
               During the taxable year in issue, petitioner was employed              
          full-time as a building operating engineer in Chicago and earned            
          approximately $51,840 from his employment in 2003.                          
               In addition to his employment, petitioner spent a good deal            
          of time playing video poker.  It was his only form of gambling.             
          Petitioner bet an average of $25 on each hand.  He began playing            
          video poker in 1997 and spent an increasing amount of time                  
          engaged in the activity.                                                    
               Video poker is a “casino game based on five card draw                  
          poker.”  Http://en.wikipedia.org/wiki/Video_poker.  Players bet             






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