Extension and Modification of Limitation on Wagering Losses
Section 70114 · Sec. 70114 ·
What this chapter is about
This part changes how gambling losses are deducted. Only 90 percent of the losses may be claimed. They still cannot be more than the winnings. The change starts with tax years after December 31, 2025.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70114 in the PDF
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”
That sentence, in plain words
The deduction equals 90 percent of the losses. Those are the losses for that tax year.
What this is about
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.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70114 in the PDF
What the document says
“The amendment made by this section shall apply to taxable years beginning after December 31, 2025.”
The section applies its amendment to taxable years beginning after December 31, 2025.
What the document actually says
“The amendment made by this section shall apply to taxable years beginning after December 31, 2025.”
That sentence, in plain words
The change starts with tax years that begin after December 31, 2025.
What this is about
Earlier tax years are not touched. The old rule still holds for them. The date is fixed in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Both things the section does: the rewritten rule on wagering losses with its 90 percent figure and its cap at gains, and the effective date.
Nothing in the section is left out. It has two subsections and each is recorded.
The section works by rewriting subsection (d) of section 165 of the Internal Revenue Code of 1986, which is not indexed here, so what the older wording said cannot be checked against anything on this site.
