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From this sale, Terry amassed a huge fortune that would later propel a drinking and gambling problem into astronomical losses at various Harrah's owned casinos. It started in 2007 when Mr. Watanabe took a trip to Las Vegas, but then never left.
A taxpayer may not reduce his gambling winnings by his gambling losses and just report the difference. Instead, gambling winnings are reported in full as income, and losses (subject to limitation as discussed below) are deducted on Schedule A. Therefore, if a taxpayer does not itemize his deductions, he is unable to deduct gambling losses.
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