TAX 9863 Lecture Notes - Lecture 17: Croupier, Lucky Louie, Gross Income
Document Summary
Problem 2 (tip to maitre d"; toke to croupier), casebook, p. 76. At the heads eye casino in las vegas, lucky louie gave the maitre d a tip to assure a good table and gives the croupier a toke after a good night with the cubes. Does either the maire d or the croupier have gross income: maitre d has of gross income. [it is easier to argue that maitre d has income because he"s in a position to give special service] He can find you a table when it"s crowded= clearly a tip: croupier also has income [harder, but yes] [logic: croupier didn"t give better service that you associated w/ tipping; but on the other hand, doesn"t make sense someone getting steady stream of cash from performing job would not have gross income from that. ] Taxable income in light of duberstein and subsequent cases.
