Wagering Losses
(d) Wagering Losses — Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions. For purposes of the preceding sentence, in the case of taxable years beginning after December 31, 2017, and before January 1, 2026, the term “losses from wagering transactions” includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.
(August 16, 1954, ch. 736, 68A Stat. 49; Public Law 85–866, title I, §§ 7, 57(c)(1), title II, § 202(a), September 2, 1958, 72 Stat. 1608, 1646, 1676; Public Law 87–426, § 2(a), March 31, 1962, 76 Stat. 51; Public Law 88–272, title II, §§ 208(a), 238, February 26, 1964, 78 Stat. 43, 128; Public Law 88–348, § 3(a), June 30, 1964, 78 Stat. 237; Public Law 91–606, title III, § 301(h), December 31, 1970, 84 Stat. 1759; Public Law 91–677, § 1(a), January 12, 1971, 84 Stat. 2061; Public Law 91–687, § 1, January 12, 1971, 84 Stat. 2071; Public Law 92–336, § 2(a), July 1, 1972, 86 Stat. 406; Public Law 92–418, § 2(a), August 29, 1972, 86 Stat. 656, 657; Public Law 93–288, title VII, § 702(h), formerly title VI, § 602(h), May 22, 1974, 88 Stat. 164, renumbered title VII, § 702(h), Public Law 103–337, div. C, title XXXIV, § 3411(a)(1), (2), October 5, 1994, 108 Stat. 3100; Public Law 94–455, title XIX, § 1901(a)(26), October 4, 1976, 90 Stat. 1767; Public Law 97–248, title II, § 203(a), (b), title III, § 310(b)(5), September 3, 1982, 96 Stat. 422, 598; Public Law 98–369, div. A, title I, § 42(a)(4), title VII, § 711(c)(1), (2)(A)(i), (ii), title X, § 1051(a), July 18, 1984, 98 Stat. 556, 943, 1044; Public Law 99–514, title IX, § 905(a), title X, § 1004(a), October 22, 1986, 100 Stat. 2385, 2388; Public Law 100–647, title I, § 1009(d)(1), November 10, 1988, 102 Stat. 3449; Public Law 100–707, title I, § 109(l), November 23, 1988, 102 Stat. 4709; Public Law 105–34, title IX, § 912(a), August 5, 1997, 111 Stat. 878; Public Law 106–554, § 1(a)(7) [title III, § 318(b)(1), (2)], December 21, 2000, 114 Stat. 2763, 2763A–645; Public Law 108–311, title IV, § 408(a)(7)(A), (B), October 4, 2004, 118 Stat. 1191; Public Law 110–343, div. C, title VII, § 706(a)(1), (2)(A)–(C), (c), October 3, 2008, 122 Stat. 3921–3923; Public Law 111–147, title V, § 502(a)(2)(D), March 18, 2010, 124 Stat. 107; Public Law 113–295, div. A, title II, §§ 211(c)(1)(C), 221(a)(27)(A)–(C), December 19, 2014, 128 Stat. 4033, 4040; Public Law 115–97, title I, §§ 11044(a), 11050(a), December 22, 2017, 131 Stat. 2087, 2089.)
NOTES
Section 23(h) of the Internal Revenue Code of 1939 read: “Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions.”
The Tax Cut and Jobs Act (effective January 1, 2018) was the largest revision of the tax code in over three decades. The previous version of Section 165(d) read: “Losses from wagering transactions shall be allowed only to the extent of the gains from such transactions.”
