Hacker News Reader

IRS = very crooked. Take gambling and lotteries. We know house = wins. Yet the IRS grabs huge % of lottery winnings, yet does not allow gamblers to deduct their ticket costs = a huge unearned windfall for the IRS. Here in Canada the CRA (functions like IRS) is fair, lotteries are not taxed and thus no deductions for tickets. Seems to be a relic of religious oppression - IHMO

View on HN

Other than lottery winners, who cares? Is there some reason lottery winnings (or other forms of gambling) should be treated gingerly?

Not gingerly, just reflect the correct profit/loss = since the house wins, it is a defacto double tax

So maybe don’t gamble?

Lottery ticket costs are deductible, but only up to the amount of your lottery winnings. E.g., if you bought 1000 $1 tickets and won $12000, you could deduct $1000.

but most are losers = unsymmetrical = it should be fully deductible as it is made with the object of making money

Reply on news.ycombinator.com