[ QUOTE ]
Amazing how the IRS never wins the hobby v. business issue.
[/ QUOTE ]
The IRS wins most hobby loss cases in front of the Tax Court. This was a rare decision where the IRS lost, mainly based on the law.
I wrote about this decision last week, and noted the primary reason that the IRS lost,
"While the Court noted that she hadn't had profits, that was the only factor that favored the IRS. Ms. Myers used Slot Club records, was knowledgeable about gambling, spent considerable time and effort, was successful in other business operations (the trucking company), and testified credibly that she derived no pleasure from the gambling." You don't have to be a winner to be a professional gambler; you just must
try to be a winner, keep good records, and gamble with continuity and regularity.
Note that this case cannot be used as a precedent.
-- Russ Fox