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In distinction, if someone is within the commerce or business of playing, then all this revenue and all these deductions go into the Schedule C enterprise kind. As a substitute of having to take the wagering losses and the expenses as personal deductions, they get subtracted from the wagering revenue proper on the Schedule C, and solely the underside line of the Schedule moves over as earnings or loss onto the Form 1040. No limitation on deductions, no artificial increase in gross earnings.