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Example 2 - JM Grill has total gaming income of $120,000 in 2006 and $40,000 in payouts during the same period. JM will be taxable on all of its income from contests of chance under the Gambling Contests of Chance ($50,000 a year or greater) BO tax classification because its “gross income” for threshold purposes is greater than $50,000 ($120,00

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