Lakhani v. Comm'r
United States Tax Court
For 2005-09, P, a professional gambler who bet on horse races, deducted his net wagering losses (either incurred during the year or carried over from prior years) in contravention of I.R.C. sec. 165(d). R disallowed those deductions and imposed an I.R.C. sec. 6662(a) accuracy-related penalty for all years.
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For 2005-09, P, a professional gambler who bet on horse races, deducted his net wagering losses (either incurred during the year or carried over from prior years) in contravention of I.R.C. sec. 165(d). R disallowed those deductions and imposed an I.R.C. sec. 6662(a) accuracy-related penalty for all years. P argues (1) he is entitled to deductions for pro rata shares of the track's "takeout" from the parimutuel betting pools, which would wholly or partially offset the disallowed net wagering losses for the years at issue and (2) I.R.C. sec. 165(d) unreasonably discriminates against business…
1Opinion of the Court
Halpern, Judge:
By notices of deficiency (notices), respondent determined deficiencies in income tax and penalties for petitioner’s 2005-09 calendar taxable years as follows:
Year Deficiency Penalty sec. 6662
2005 $22,571 $4,514
2006 18,462 3,692
2007 9,918 1,984
2008 7,401 1,480
2009 5,965 1,193
Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. All dollar amounts have been rounded to the nearest dollar.
After concessions, the issues for decision are whether…
2Cases cited13 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- HIGBEE v. COMMISSIONER OF INTERNAL REVENUEUnited States Tax Court · 2001
- Carmichael v. Southern Coal & Coke Co.Supreme Court of the United States · 1937
- Jonson v. Comm'rUnited States Tax Court · 2002
- Jonson v. CommissionerCourt of Appeals for the Tenth Circuit · 2003
8 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- In re Racing Servs., Inc.United States Bankruptcy Court, D. North Dakota · 2018
- Lakhani v. Comm'rUnited States Tax Court · 2014
- PW Enterprises, Inc. v. KalerDistrict Court, D. North Dakota · 2020
- Rapp v. Comm'rUnited States Tax Court · 2017
- Shiraz Noormohamed Lakhani v. CommissionerUnited States Tax Court · 2014