Suppose Daniel wins $15,000 in Casino A on first night, wins $2,000 in casino B on second

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Suppose Daniel wins $15,000 in Casino A on first night, wins $2,000 in casino B on second night, but losses $20,000 on third night? Which one of the below statements in true?

He needs to pay tax on winnings of $17,000 and can claim deduction for all losses.

He needs to pay tax for $3,000 (winnings - losses).

He needs to pay tax on winnings of $17,000 and may be able to claim a deduction for all gambling losses.

He can claim deductions for $20,000

Related Book For answer-question

An Introduction to the Mathematics of Financial Derivatives

ISBN: 978-0123846822

3rd edition

Authors: Ali Hirsa, Salih N. Neftci

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Posted Date: Feb 07, 2024 06:52 AM

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Suppose Daniel wins $15,000 in Casino A on first night, wins $2,000 in casino B on second

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