- 5 -
Notably, there was at least one occasion where Mr. Hardwick
failed to include petitioners’ gambling winnings in his log.
Mr. Hardwick testified that he won $24,000 on Sunday, June 9,
2002, at the Grand Casino Tunica, yet his log does not include a
notation for this win. Also, it appears that Mr. Hardwick may
have carried over to the 2002 taxable year a net $50,580 gambling
loss from 2001.5 Taking into account this possible carryover, it
appears, although the odds of winning on a casino’s slot machines
after a large number of plays is statistically improbable, that
based on Mr. Hardwick’s log, petitioners may have had net
gambling winnings for 2002.6
4(...continued)
believes the numbers total $36,030 (based on a $50,530 loss for
2001 instead of the $50,580 as calculated by Mr. Hardwick). See
supra note 3. The record does not explain how petitioner got
from his apparent $35,580 total, shown as log entry No. 14, to
($31,180), the total for 2002 shown as log entry No. 16.
5The fourth notation for 2002 is “76480” and/or “74580” (log
entry No. 5) which according to Mr. Hardwick’s testimony is a
“running total”. Although there is no indication that the
$76,480/$74,580 dollar amount is a net loss, it appears to be
consistent with the rest of the document. According to
Mr. Hardwick’s notations, his yellow notebook log sheet reflects
that petitioners had a net gambling loss of $50,580 for 2001 (see
log entry No. 1). Taking into account petitioners’ $19,000
winnings (log entry No. 2), $18,000 loss (log entry No. 3), and
$25,000 loss in Feb. 2002 (log entry No. 4), the $76,480/$74,580
“running total” incorporates petitioners’ $50,580 loss from 2001.
The next “running total” listed is “-50580” and/or “50080” (log
entry No. 10), which appears to be an approximate result after
taking into consideration a $1,100 loss (log entry No. 6),
winnings of $14,000 (log entry No. 7), and tax refunds of $8,800
and $2,300 (log entries No. 8 and No. 9).
6The Court notes that according to Mr. Hardwick’s notations
(continued...)
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