Three blogposts in one day. To complete the hat trick, it’s an old, familiar face, Joyce A. Linzy, 2013 T. C. Memo. 219, filed 9/16/13.

Remember Joyce? Not sure? See my blogpost “The Preparer – Unprepared”, 11/8/11, Joyce’s last appearance in Tax Court.

It’s the usual unsubstantiated deductions story, on which I won’t waste much time.

The only useful tidbit is Judge Kerrigan’s comment on gambling losses. Joyce claims she has them to offset her winnings (reported on W-2Gs, of course), but didn’t take the losses on her return.

Judge Kerrigan: “Taxpayers who are not in the trade or business of gambling and who choose to calculate their taxable income using itemized deductions in lieu of the standard deduction may deduct gambling losses under certain circumstances. Section 165(d) provides that ‘[l]osses from wagering transactions shall be allowed only to the extent of the gains from such transactions’.” 2013 T. C. Memo. 219, at p. 11.

OK, but (and there’s always a “but”): “In the case of gambling winnings and losses taxpayers can substantiate their income and deductions by maintaining a contemporaneous log, see Schooler v. Commissioner, 68 T.C. 867, 871 (1977), or by consistently using a player’s card which monitors gambling activity, see Lutz v. Commissioner, T.C. Memo. 2002-89. Many taxpayers do not keep a detailed record of their wagering winnings and losses, but we do not treat taxpayers who claim to have sustained wagering losses more favorably than other taxpayers by allowing a deduction for wagering losses when the evidence is inadequate. Schooler v. Commissioner, 68 T.C. at 871.” 2013 T. C. Memo. 219, at pp. 11-12.

Joyce has withdrawal slips from ATMs at casinos, but that’s not good enough. Unlike Fortunato Gonzalez and Maria C. Gonzalez, as to whose gambling exploits see my blogpost “The Gamblers”, 8/6/12, she doesn’t tie the withdrawals in with the gambling activities, and unlike Fortunato and Maria C., gambling’s not Joyce’s major source of income.

A pocket notebook, even the paper kind, is a gambler’s friend.