Donald Mustard was a functional gambler, or at last, he gambled a lot. His venue of valuserviceable was nag racing. He gambled at courses in Florida and Colorado. He went to the course 6 days a week for 48 weeks in 2018. He gone-by a tangible totality of duration studying racing constitutes, programs, and other materials. He consecrated from 60 to 80 hours each week to these gambling-connected endeavors. He never placed bets on advantage of any other individual, or sold tips, or serene commissions for placing bets, or functioned as a bookmaker. He gambled solely for his own recital. He had no other employment or emblem of calling. Donald managed to win $120,000 in 2018 from his gambling endeavors. Unfortunately, he too lost $121,000. As separate of his functional gambling energy, Donald incurred sundry expenses that were undeviatingly connected to his gambling energy:
Meals (already at 50%)
The totalitys and the frequented analogy to his gambling employment at not in topic.
Donald is cognizant that there is some designation of government encircling limiting wagering losses to wagering gains but he is hoping that his other employment expenses are deductible on his Schedule C.
Prepare a tax lore memo addressed to the files that explains what Donald’s tax matter of his gambling losses and employment expenses is?
You conciliate deficiency to stay your falsification using important sources of tax law. Your passagebook is NOT important antecedent. You may lore ANY tax antecedent (important or inferior) but your discontinuance must be superficial and stayed using simply important antecedent.
You must use peculiar extract constitute in your memo (see Exhibit 2-5 in Chapter 2 of your passagebook). The constitute for this message should be functional and in the constitute of a tax lore memo (see stance on p.2-20).
This memo should be whatever prolixity you arrive-at is misspend to explain the issues. We do NOT use a bibliography or schedule of regards in a tax lore memo. You conciliate see that extracts are amid the passage of the instrument.
Your memo conciliate be graded using a qualified rendering of the College of Employment Administration’s written messages rubric (posted in Blackboard). For this assignment, points are reserved as follows:
Content conciliate be broken down into 3 components: (1) Facts, (2) Anatomy and (3) Conclusion.
Content - Facts
All pertinent grounds own been pictorial in a disengaged and neat method. Distinguishing features of the certainty sample are highlighted.
Critical grounds omitted. Unserviceable to devote or distinguish from other practicserviceable certainty samples or grounds are narrowly copied from instance.
Content - Analysis
All necessary regards to antecedent own been made. Antecedent which could devote but does not has been marked from that which does. The anatomy follows a argumentative sample of impression to the grounds and supports author’s falsification.
Analysis is peccserviceable in regard to firm tax law. Anatomy lacks cohesion and does not stay falsification.
Conclusion is disengaged and integrates delay grounds and anatomy. More than a undesigning judgment stating conclusion. Cause and chattels analogy betwixt grounds and anatomy are made. All disclosed issues are responded to. Conclusion drawn is chasten.
Conclusion is undisengaged and unbefriended by anatomy. Reader is not serviceserviceable to constitute educated conviction on tax matter of grounds pattern.