- 17 -
2000, and 2001, respectively,12 (2) all of the jackpots that he
won (as shown on Forms W-2G) gambling, and (3) all gross gambling
winnings won at the casinos not reported on the Forms W-2G. Mr.
Gagliardi’s gambling losses for each of the years in issue
exceeded the amounts of gambling losses respondent disallowed for
1999, 2000, and 2001.
OPINION
I. Deficiencies
A. Applicable Law
Section 165(a) provides the general rule that there shall be
allowed as a deduction any loss sustained during the taxable year
and not compensated by insurance or otherwise. Section 165(d)
limits the loss deduction of section 165(a), providing: “Losses
from wagering transactions shall be allowed only to the extent of
the gains from such transactions.”
This is a substantiation case: the issue is whether
petitioner has substantiated the amounts of his gambling losses
to the extent disallowed by respondent. We note that the amount
of gambling losses petitioner claimed and respondent disallowed
does not exceed the amount of gambling income reported by
petitioner, conceded by petitioner, or determined by respondent
for 1999, 2000, or 2001, respectively. Commissioner v.
12 The cash withdrawals reflected in the gambling calendars
do not include the service charge per withdrawal incurred by Mr.
Gagliardi.
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Last modified: March 27, 2008