Fair Accounting for Income Realized from Betting Earnings Taxation Act

The "Fair Accounting for Income Realized from Betting Earnings Taxation Act," or FAIR Bet Act, proposes an amendment to Section 165(d) of the Internal Revenue Code of 1986, which addresses the tax treatment of wagering losses. The bill specifically directs the striking of "90 percent" and the insertion of "100 percent" within this section. This change would permit taxpayers to deduct 100% of their wagering losses against their wagering gains, where a previous limitation may have capped such deductions at 90%. The amendment aims to ensure that the calculation of taxable income from gambling activities more accurately reflects a taxpayer's net winnings by allowing a full offset of losses up to the amount of gains.