2018 filing joint return. Husband has taxable income; wife has business loss from gambling. TurboTax is reducing our overall tax liability (lowering taxable income by amount of gambling loss from Schedule C).
Yes, if your business is gambling then you can deduct the losses, but not an overall loss from wagering. You can have losses from other aspects of the business though.
https://www.journalofaccountancy.com/issues/2016/oct/taxes-for-gamblers.html
(Edited 2/13/19 @ 4:44PM)
Yes, if your business is gambling then you can deduct the losses, but not an overall loss from wagering. You can have losses from other aspects of the business though.
https://www.journalofaccountancy.com/issues/2016/oct/taxes-for-gamblers.html
(Edited 2/13/19 @ 4:44PM)
And the burden of proof is on you to show you are a professional gambler.
Simple answer: No
But it's possible, if your wife really does qualify as a business. It's a tough standard to meet and an topic of IRS scrutiny.
reference: https://www.taxsamaritan.com/tax-preparation-services/gambler-tax-preparation/