When the selected dealer, why the game deductible losses at 100%, but medical expenses are not. This stinks. gambling losses are deductible, but only up to the amount of gambling winnings on tax returns. Therefore very few taxpayers get one day a 100% deduction for gambling losses
Claiming losses of play is about a flag automatic verification, unless the amounts are minimal. Record keeping is very strict, which is "low fruit ripe" for the IRS for all but the most fastidious players.
Others have approached the next set of the equation.
Medical expenses used to deduct for those details, which increased the burden on all taxpayers and tax authorities to keep track of it. In 1986, the tax code changed to make this simple. There were many changes, including standard deductions were raised, the personal exemptions have been raised, the top tax rates were lowered tax bracket and 7.5% floor on medical expenses was initiated. The logic being that all individuals have certain medical expenses.
But they kept the deduction for medical expenses for those who could have excessive medical bills.
gambling losses are deductible up to the amount earned by the game, so I guess it's seen as a cost of "winning" these gains.
You have a good point about medical expenses with a high threshold to be deductible. Congress sets the rules - to complain to your congressman.
Congress sets the rules. In fact, you can not claim gambling losses to offset a limited number of gains. But you have a good point.
gambling losses are not deductible at 100%.
You can deduct gambling losses do not exceed the amount of gambling winnings
Posted on April 8, 2010.