Gambling as Business - Part Time Gambler as Professional

Jul 23, 2010 2 Replies

Gambling as Business - Part Time Gambler as Professional An interesting ruling found on Fairmark.com _

formatting link
This has been my contention for years. Although I have many part time, and full time, gamblers (including tax professionals) only one has insisted on making the claim. Initially, (several years ago) the claim was denied, When protest was made, IRS permitted the claim (without comment) and the claim was approved (no continued pursuit).


One thing worries me. The article says "The tax law has always recognized that you can have a business without pursuing it full-time, and there is no reason to believe gambling or trading is any different.". Does that mean if you have a part time Schedule C business, say selling candles or even doing tax preparations, then it's not a business?

In any case, depending on circumstances, auditors may deem candle sales, tax preparation (or any other endeavor) be classified using hobby rules.

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required