Re: This should end all of the false claims about paying US taxes on p
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3. Are comps taxable? Thank you, Broiler, for posting the link to Libutti v. Commissioner. As the Court noted in the case, it's gains from gambling that are taxable, not winnings. If you go to a casino, and they give you a comped lunch which you eat, there's no gain. If you sell the comp (and the casino allows that) to John Doe for $20, you've made $20 in taxable income.
If a casino gives you a Rolls Royce as an enticement to gamble, that's a pretty big gain.
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Russ,
Im pretty sure that the comp is still taxable but not as gambling income.
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Im pretty sure that you didn't read Libutti v. Commissioner.
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Libutti (from skimming the link) holds that the comps were gambling income. The issue was not whether they were income, but whether they were gambling winnings or some other type of income. Libutti won the case, which allowed him to deduct his gambling losses and effectively not have to pay taxes on the comps.
But the reason you don't have to pay tax on a comped lunch has nothing to do with this case. A comped lunch is de minimus; it is too small for the tax code to be concerned with. The comps in Libutti were worth thousands of dollars, far different from the comps the average recreational gambler gets.
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