Baxter v. United States

Baxter v. United States
Court	United States District Court for the District of Nevada
Full case name	William E. Baxter Jr. v. United States
Decided	March 11, 1986
Docket nos.	Civ. No. R-84-463 BRT
Citation(s)	633 F. Supp. 912; 86-1 U.S. Tax Cas. (CCH) ¶ 9284
Court membership
Judge(s) sitting	Bruce Rutherford Thompson

Baxter v. United States, 633 F. Supp. 912 (D. Nev. 1986),^[1] was a federal tax refund case, decided in 1986, regarding the U.S. federal income tax treatment of the gambling income of a professional gambler. Because of this case, gambling winnings in the United States can in certain cases be treated as business income for federal income tax purposes. This means that in some cases expenses and losses can be deducted from gambling winnings in arriving at the net earnings from self-employment, and that winnings can be placed into retirement funds.