Bob is a compulsive gambler and does all of his gambling at the Silver Casino. I
ID: 2448711 • Letter: B
Question
Bob is a compulsive gambler and does all of his gambling at the Silver Casino. In a prior tax year, Bob lost over $1 million rolling the dice. The casino management considers Bob to be a valued patron and gave him automobiles, watches, and tickets to NBA games with a total value of over $400,000. Bob immediately “sold” the “gifts” back to the casino for chips, which he lost shooting the dices. He did not report the ‘’gift” as income. You are now representing him, and you want to count the “gift” as gambling income. Is it?
Explanation / Answer
The free gifts or comps provided to Bob by Silver Casino to Bob even when sold back to casiono will be treated as income as they are linked to the gambling of Bob. However , the gambling lossescan be adjusted against the income maximum upto the income.