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Write-offs away from losings one to meet or exceed their winnings nonetheless are not greeting. The new You.S. Finest Court governed inside 1987 in the example of Commissioner versus. Groetzinger you to definitely deductions to possess loss never go beyond the funds of winnings. You’re also permitted to subtract losses simply around the amount of the fresh playing winnings you claimed. Therefore, for those who claimed $2,100 however, lost $5,000, the itemized deduction is bound so you can $dos,one hundred thousand. You can’t make use of the leftover $step three,000 to attenuate your most other taxable earnings.
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