Will roy losses and expenses offset all of his income

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Reference no: EM132738867

Question - Mr. Roy L. Flush, is a full-time professional poker player who lives in Las Vegas, Nevada. Roy has been competing in poker tournaments for many years. For the last several years, Roy has been very successful, and his poker tournament winnings have far exceeded is losses and expenses. Unfortunately, last year was not a good one for Roy. Last year, Roy won money at some poker tournaments, amounting to $180,000 in winnings, but he lost $260,000 in other poker tournaments. In addition, Roy incurred the following expenses last year: (a) Travel to poker tournaments (held other than in Las Vegas): $2,500 and (b) Tournament admission/entry fees: $10,500. Roy also earned $90,000 of investment income last year.

First step: identify the relevant code sections and regulations and find a court decision that is relevant to roy's situation.

Second step: is Roy correct or incorrect about his assumption? Will Roy's losses and expenses offset all of his income from last year?

Reference no: EM132738867

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