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Path: utzoo!watmath!clyde!cbosgd!ihnp4!ihuxk!rs55611
From: rs55611@ihuxk.UUCP (Robert E. Schleicher)
Newsgroups: net.taxes
Subject: Re: lottery deductions <Illinois and other lotto states>
Message-ID: <1046@ihuxk.UUCP>
Date: Fri, 3-Jan-86 13:26:42 EST
Article-I.D.: ihuxk.1046
Posted: Fri Jan  3 13:26:42 1986
Date-Received: Sat, 4-Jan-86 05:20:43 EST
References: <1191@ihuxb.UUCP>
Distribution: net
Organization: AT&T Bell Laboratories
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> Hey  lotto fans,
> 	My father is an avid lotto player. Is it true that the
> amount played on lottery is tax deductible. Is this state only?
> Or is this federal tax deduction also.
> 			
> 					thanks
> 					L. Litzhoff

My understanding of federal tax law is that gambling losses
are deductible ONLY for offsetting gambling winnings.  Thus, you only have
to pay taxes on your net gambling "profit".  However, you cannot deduct
anything for an overall gambling net loss.  So, unless you won more at the
lottery than you spent, there is no deduction.

Bob Schleicher
ihuxk!rs55611