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reproduced below, petitioner had net gambling losses of
$28,183.15 in 2002.
Gaming Area Dollars In Dollars Out Win/Loss
Pit $75.00 -0- ($75.00)
Slot 686,611.23 $658,503.08 (28,108.15)
Totals 686,686.23 658,503.08 (28,183.15)
Petitioner agrees that the report is accurate to the extent
that it shows that she had net gambling losses of $28,183.15 in
2002. Petitioner, however, argues that the report was
“definitely incorrect” in showing that she gambled $686,686.23 in
2002. For tax purposes, it is irrelevant whether petitioner
actually gambled $686,686.23 or some other amount in 2002 in
order to arrive at net gambling losses of $28,183.15.
TCO Martin included petitioner’s excess gambling losses on
the expenses side of the “T” account because petitioner failed to
account for the income source that she used to pay for those
losses. Unless petitioner can account for how she had paid for
her excess gambling losses in 2002, such losses were properly
included in the expenses side of the “T” account.
Petitioner claims that she used her excess winnings from
2001 to pay for her excess gambling losses in 2002. In support,
petitioner presented a Form 1040 for 2001 where she reported
winnings of $60,546 and claimed a gambling loss deduction of
$43,916, resulting in net winnings of $16,530.
TCO Martin testified that he had reviewed bank statements
from all of petitioner’s known accounts. The statements,
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