US Tax Court Slaps Gambler Accountant With Tax Bill

Law360, New York (March 11, 2014, 6:09 PM EDT) -- The U.S. Tax Court on Wednesday refused to allow a California accountant and self-professed professional gambler to offset his accounting practice's gains with his gambling losses, and hit him with a penalty, saying his creative arguments on horse betting did not stack up against the Internal Revenue Code and legal precedent.

Judge Diane L. Kroupa said Shiraz N. Lakhani could not deduct the track “takeout” — a state-mandated percentage of betting pool money given to horse track management regardless of which horse wins a particular race...
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