-17- thoughtful and credible. On balance, we find this factor favors petitioner. Conclusion Taking into account the above factors and considering the facts and circumstances relating to petitioner’s gambling activity, we conclude that petitioner engaged in the gambling activity with the actual and honest objective of making a profit in 2003. As the parties have agreed that petitioner conducted the gambling activity with continuity and regularity, we conclude that petitioner was in the trade or business of gambling during 2003. Accordingly, petitioner may deduct her gambling expenses under section 162(a) to the extent allowable under section 165(d). To reflect the foregoing, Decision will be entered for petitioner.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Last modified: March 27, 2008