Gambling-related expenses can be deductable.

The IRS now concedes that professional gamblers can deduct their business expenses on Schedule C. It will follow a 2011 Tax Court ruling allowing a gambler to write off gambling-related expenses such as meals, lodging and transportation as Schedule C business expenses. These costs can reduce self-employment income and can even create a net operating loss. Although gambling losses are deductible only to the extent of winnings, the expenses are not considered wagering losses. Casual gamblers who aren't in the business of gambling can't write off these costs.

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