Cir

MEMORANDUM

Taxpayers John F. Chow and Esther K. Chow appeal pro se from the Tax Court’s decision, following a bench trial, upholding the Commissioner of Internal Revenue’s determination of deficiencies and penalties for tax years 2004 and 2005. We have jurisdiction under 26 U.S.C. § 7482 (a). We review de novo the Tax Court’s legal conclusions and for clear error its factual determinations. Kelley v. Comm’r, 45 F.3d 348 , 350 (9th Cir.1995). We affirm.

The Tax Court properly determined that the Chows could only deduct Mrs. Chow’s gambling losses to the extent of her gambling gains. See 26 U.S.C. § 165 (d); Boyd v. United States, 762 F.2d 1369, 1372-73 (9th Cir.1985) (“[A] gambling loss, although it may be a business expense, is deductible only to the extent of gambling gains.”).

The Tax Court properly determined that the Chows were not entitled to adjustments to the cost basis of their Del Mar property for either their $25,000 payment to relatives or the costs of releasing a lien on the property for unpaid attorney’s fees from their earlier civil rights action against San Bernardino County. See Moore v. Comm’r, 425 F.2d 713, 715 (9th Cir.1970) (taxpayer bears burden of…