WAGER Act of 2025

The Winnings And Gains Expense Restoration Act of 2025, also known as the WAGER Act, proposes to amend Section 165(d)(1) of the Internal Revenue Code of 1986. This legislation seeks to restore specific wagering loss limitation rules , thereby modifying how taxpayers can deduct losses and associated expenses from wagering transactions. The bill's objective is to adjust the current tax treatment of gambling losses, potentially allowing for a more expansive deduction of expenses related to wagering activities. These revised provisions are scheduled to apply to all taxable years commencing after December 31, 2025 , influencing future tax filings for individuals and entities involved in gambling.