Ditunno v. Commissioner
United States Tax Court
Held, based on the facts and circumstances in the record, taxpayer, a full-time gambler, was in the trade or business of gambling. Higgins v. Commissioner, 312 U.S. 212 (1941), followed, and Gentile v. Commissioner, 65 T.C. 1 (1975), overruled. Held, further, taxpayer's gambling losses were not items of tax preference for purposes of computing the minimum tax under sec. 56 or sec. 55, I.R.C. 1954.
1DissentTannenwald, Chief Judge
I respectfully dissent from the action of my colleagues in the majority, who, I suggest, have allowed their hearts to prevail over their minds in order to alleviate the arguably inequitable application of the minimum tax to full-time gamblers like petitioner. The action of the majority will wreak havoc on the concept of trade or business which, although not defined in either the Internal Revenue Code or the regulations, has, of necessity, developed over time through the judicial process. In overruling Gentile v. Commissioner, 65 T.C. 1 (1975),1 and rejecting the well-established guideline…
2Cases cited30 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Snow v. CommissionerSupreme Court of the United States · 1974
- Fischer v. CommissionerUnited States Tax Court · 1968
- Sullenger v. CommissionerUnited States Tax Court · 1948
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