-10-
objective. Sec. 1.183-2(b)(1), Income Tax Regs. In determining
whether a taxpayer conducted an activity in a businesslike
manner, we consider whether the taxpayer maintained complete and
accurate books and records, whether the taxpayer conducted the
activity in a manner substantially similar to those of comparable
businesses that are profitable, and whether the taxpayer
attempted changes in an effort to earn a profit. Engdahl v.
Commissioner, 72 T.C. 659, 666-667 (1979); sec. 1.183-2(b)(1),
Income Tax Regs.
The casinos maintained profit and loss tallies for
petitioner through the player card system. Petitioner thus did
not find it necessary to keep separate books and records to track
this information. She used her player card most of the time to
enable the casino to perform this tracking function. Petitioner
also did not keep a separate bank account for her gambling
activities but kept a tally of the amount she had with her when
she went to the casino. See Canale v. Commissioner, T.C. Memo.
1989-619; cf. Calvao v. Commissioner, T.C. Memo. 2007-57
(taxpayer claimed he kept daily records of gambling activity but
failed to offer any records into evidence).
Petitioner also had no written budget or business plan,
although she had a strategy she felt would enable her to win.
She explained her strategy in detail to the Court. Petitioner’s
strategy was to identify and play slot machines that were due for
a payout. She implemented the strategy by carefully gathering
information about the playing history of the slot machines in the
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