This bill would change the Internal Revenue Code to limit deductions for wagering losses. It replaces section 165(d) so that losses from wagering transactions are allowed only to the extent of gains from those transactions. The bill also says that any deduction otherwise allowed in the tax code that is incurred when carrying on a wagering transaction counts as a wagering loss. The change would apply to taxable years beginning after December 31, 2025.
If you have gambling or wagering winnings and losses, you could only deduct losses up to the amount of your winnings. Expenses related to carrying on wagering (for example, expenses tied to placing bets) would be treated as wagering losses and also limited by your wagering gains. If you do not have wagering activity, the bill has no direct effect on your taxes.
No publicly available information on estimated budgetary effects, revenue changes, or costs is included in the bill text or metadata. The bill sets an effective date for taxable years beginning after December 31, 2025.
No publicly available information.
No publicly available information.