- 5 -
For 2000, the taxable year in issue, Mrs. Tschetschot earned
approximately $49,000 in wages. She also participated in nine
poker tournament series, winning in excess of $11,000.4
Mrs. Tschetschot claimed a net loss of $29,933 from her
“professional gambler” activity in 2000 on her Schedule C, Profit
or Loss From Business. Mr. Tschetschot claimed a net loss of
$9,000 from his “professional gambler” activity in 2000 on his
Schedule C.
Respondent determined a deficiency of $10,071 based on the
view that the deductions claimed by petitioners related to their
gambling activities were not appropriately Schedule C deductions,
but rather deductions allowable on Schedule A, Itemized
Deductions, but only to the extent of petitioners’ winnings.
Respondent also determined an accuracy-related penalty under
section 6662(a) of $2,014.
At trial, petitioners conceded the issue as to Mr.
Tschetschot but disputed the determination as to Mrs.
Tschetschot. Respondent conceded Mrs. Tschetschot’s status as a
professional, as well as the corresponding treatment of certain
expenses related to her professional gambling activity.
4 The amount of Mrs. Tschetschot’s stipulated winnings
totals $13,269, whereas she reported only $11,708. Respondent
discusses this discrepancy in his posttrial brief by saying that
“Respondent did not adjust this discrepancy because the
unreported winnings would have been offset by allowance of losses
that were disallowed.”
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011