Only 90 percent of gambling losses may be deducted
What the document says“shall be equal to 90 percent of the amount of such losses during such taxable year, and”
The section strikes subsection (d) of section 165 of the Internal Revenue Code of 1986 and inserts a new one under which the deduction for losses from wagering transactions equals 90 percent of those losses for the year and is allowed only up to the gains from those transactions in the year. Losses from wagering transactions includes any deduction otherwise allowable under that chapter incurred in carrying on a wagering transaction.
What the document actually says“shall be equal to 90 percent of the amount of such losses during such taxable year, and”
The deduction equals 90 percent of the losses. Those are the losses for that tax year.
The rest of the loss cannot be claimed. The deduction also cannot top the winnings. Costs of running a betting business count as losses here.
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