Allen visits reno, nevada, once a year to gamble. this year his gambling critical thinking loss was $25,000. he commented to you, "at least i didn't have to pay for my airfare and hotel room. the casino paid that because i am such a good customer. that was worth at least $3,000." what are the relevant tax issues for allen?

The answer is: If Allen is a professional gambler, he can use his gambling losses to offset the income from his gambling activities.  

Explanation:

We can consider the airfare and hotel expenses as income part of Allen's income (+$3,000) but since he lost more money in the casino (-$25,000), the net effect is an economic loss (-$22,000).

That economic loss isn't tax deductible unless he was a professional gambler, then he could offset his income by $22,000.

answer; /// i do believe that the above is (true)

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy