Which of the following statements about the tax consequences of gambling is true?

Question

Quizplus · Accepted Answer

Gambling losses are deductible as itemized deductions only to the extent of gambling winnings. This means that if you have $5,000 in gambling winnings but also $7,000 in gambling losses, you can only deduct up to $5,000 of your losses as an itemized deduction. Gambling winnings, on the other hand, are subject to federal income tax and must be reported on your tax return.

Which of the Following Statements About the Tax Consequences of Gambling