Minnesota Supreme Court Lets Gambler Deduct Losses

[The Straight Story]

Minnesota Supreme Court Lets Gambler Deduct Losses

POSTED: 10:10 am EDT May 17, 2006

ST. PAUL -- A Minneapolis woman took a gamble with the state Supreme Court -- and won.

Estelle Busch claimed she worked 60 hours a week at gambling, and that her losses should be tax deductible.

Busch said over three years, she won $1.5 million and lost $1.7 million. But the state wouldn't let her deduct her $200,000 in gambling losses.

The Department of Revenue wanted Busch to pay $102,000 in back taxes. But the 72-year-old went to the Minnesota Supreme Court, arguing she was running a business.

http://www.local6.com/news/9230533/detail.html

Can of worms, meet opener.

[Kutjara]

1. Cool! I'm going to take all the money I'd normally pay in taxes...

...each month, and blow them on a weekend in Vegas. Woohoo!

[AngryAmish]

2. I am told the IRS has similar rules

A friend on mine's brother is a "professional gambler". Actually, he is a broken down gambler, but I am told he gets to deduct his losses.

[napi21]

4. The IRS rule is that you can deduct your losses up to the amount of your

winnings. You cannot deduct losses in excess of your winnings.

[depakid]

3. "she won $1.5 million and lost $1.7 million"

A loss of $66,000 per year- that's some busines plan.

The article doesn't really give many facts, but it sounds like she probably paid taxes on her winnings at some point.

[shockingelk]

5. Win some lose some

Estelle seems to have been busy with the courts lately: she lost this suit as few months ago: http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=mn&vol=apppub%5C0601%5Copa050426-0110&invol=1