Weil is unable to prove his profit motive, his gambling activities will be considered a hobby under Reg. 183(c). Accordingly, under Sec. 165(d), Mr. Weil is allowed a deduction based on his gambling losses as miscellaneous and itemized deductions. The floor rule of 2 percent of adjusted gross income indicated on the LTR 200136004 (PLR) will not apply to these types of losses, but the maximum amount of deduction allowed will be limited to the extent of the gambling winnings won at during the taxable period. year. Any remaining gambling winnings will be fully taxable as part of gross income. Under IRS Publication 529 [2013], gambling winnings must be reported in full as other income even if the amount of losses equals the total winnings. Additionally, under Reg. 1.6001-1(a)(e), Mr. Weil is required to maintain on file all supporting documentation for gambling losses such as loss of tickets, as well as receipts in order to provide appropriate justification in the event of an IRS audit. Otherwise, the deduction of gambling losses will be refused. Gregory Alberico, 70 TCM 1320 (1995), TC memo