Us Congress Senate Bill SB2230

Us Congress 2025-2026 Regular Session

• Introduced: 7/9/25
• Refer: 7/9/25

Caption

Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act

Impact

If enacted, SB2230 will streamline the tax treatment of wagering losses, impacting the calculations of taxable income for individuals and entities involved in gambling. This could lead to increased tax revenues as taxpayers will have limited ability to deduct losses beyond their gains, ultimately affecting their overall financial reporting and tax burdens. The bill's provisions would apply to taxable years commencing after December 31, 2025, providing a timeline for stakeholders to prepare for this regulatory change.

Summary

SB2230, titled the 'Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act', is a legislative proposal aimed at amending the Internal Revenue Code of 1986 to reinstate specific rules concerning wagering losses. This bill seeks to clarify the treatment of losses incurred from wagering transactions, stipulating that such losses can only be deducted to the extent of gains from similar transactions. As a result, this proposal would affect tax liabilities for individuals and businesses engaged in gambling activities, ensuring that their losses are not excessively offset against their taxable income.

Contention

Discussion surrounding SB2230 may include contentions about the fairness and implications of limiting loss deductions for gamblers. Critics might argue that this approach disproportionately impacts serious gamblers or businesses that operate within the wagering field, such as casinos and betting companies, possibly curbing economic activity in those sectors. Supporters, on the other hand, may assert that reinstating these limiting rules is essential for maintaining a balanced tax framework, preventing excessive tax avoidance, and ensuring that tax laws are equitable across different economic activities.