A California man tried to deduct lottery ticket purchases as donations to the California School system. The claim was that since the proceeds of lottery tickets are supposed to go to the schools, that the tickets could be deducted as a charitable contribution. The problem is that the IRS specifically states that the cost of raffle, bingo, or lottery tickets are not deductible. Just a friendly reminder, if you win the lottery the proceeds are taxable so be sure to find yourself a tax attorney if you win the powerball.
If you or some one you know is having some tax issues, give our office a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.