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As we noticed in Elements three and four of this sequence, a gambler, whether or not a full-time professional or an occasional weekend participant, may deduct the quantity of dropping bets from winnings to scale back taxable revenue (however not to create a loss that can be applied in opposition to non-gambling earnings). However how do you present how much you have lost? This publish, the final in my sequence on taxation of playing, addresses the query of how a horseplayer should document her wins and losses, and what the IRS and the Tax Court docket are prone to do if in case you have less than excellent documentation.
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