A Tax Research Memo Regarding Ray's Case

Tax research memoName:Institutional affiliation:Tax research memoFacts Ray is my client who has been working as cooperate executive for a long time. He became overly stressed up and decided that he should quit his job as a cooperate executive. Upon leaving, Ray did not want to look for a new desk job. He had all the time which he could make any choice on what to do to substitute his job. Ray finally decided to devote all his time in gambling. He spent his newly found time to betting on horse races. To get into the gaming business fully, one has to invest both time and finances into the firm. Thus, Mr. Ray had to devote his time to the gaming. He spent 60 hours in a week on the racing activities. The commitment included studying more to have an insight of the horses and any other information concerning racing. The amount of time devoted in the gaming business was significant enabling him to learn a lot of information about his newly found occupation. Additionally as a business person, one has to keep track of the expenses incurred as well as the returns that one gets. Ray