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Tax committee advances bill to reverse gambling loss deduction cap

House lawmakers advanced legislation that would reverse last year’s tax law limiting gambling loss deductions, which caps deductions at 90% of losses, according to the WSJ.

House lawmakers advanced legislation on Wednesday to reverse part of last year’s tax law that has been hurting gamblers. In Republicans’ “one big, beautiful bill,” Congress set a new cap on the deduction for gambling losses. Taxpayers can now deduct only 90% of their losses.