A friend won a reality show a few weeks ago. About $20k. They gave him all $20k and he has to figure out the taxes.
Riding high on the money, he did what any beer drinking, pot smoking, god-loving American would do - go to Vegas. So he lost about $8k playing blackjack - and astonishingly did so playing $10 a hand. He has records to back this up.
What are the tax implications at the end of the year for this rollercoaster of money? Are the items even related?
His family income is about 120K per year, married with 2 kids if that matters at all.