Which of the Following Statements About the Tax Consequences of Gambling

question 11

Multiple Choice

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

• A)Gambling winnings are not taxable,and gambling losses are not deductible.
• B)Gambling losses are deductible as miscellaneous itemized deductions only to the extent of gambling winnings.
• C)Gambling losses are deductible as itemized deductions only to the extent of gambling winnings.
• D)Gambling winnings are taxable,but gambling losses are not deductible.

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Definitions:

Bond

A fixed income instrument representing a loan made by an investor to a borrower, typically corporate or governmental, which pays back with interest.

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of assets over a specific period.

Antique

An old collectible item that is valued because of its aesthetic or historical significance, often considered to be at least 100 years old.

Pleasure

The feeling of happiness or satisfaction resulting from an enjoyable activity or sensory experience.