Comment from Anonymous
Anonymous AnonymousOpposeIndividual
Summary: An individual taxpayer expresses confusion regarding the proposed changes and argues that the regulation should instead revert to the pre-OBBBA rules to avoid additional taxes on losses. They also request that taxpayers be allowed to take the standard deduction when reporting gambling income and losses rather than being forced to itemize.
Hello
I’m not sure I fully understand the proposed changes but where it says “ Prior to the changes made by the OBBBA, section 165(d) limited losses from wagering transactions to the extent of the gains from such transactions. Current § 1.165-10 restates this limitation and provides a rule for the treatment of wagering losses on a joint return.”
I’d like to stress it’s important to revert back to 165(d) as it previously was before OBBBA went into effect so as there’s not an additional tax on losses.
In addition, a fix also should include allowance for taking the standard deduction when reporting gambling losses and income and not be required to use itemization as many times reverting from standard deduction to itemization in taxes results in an additional $1,000s owed, all things being equal and no other benefits to switch.
Thank you for opening this commenting opportunity up.