Intuit Academy Tax Practice Exam 2025 – Full Preparation Guide

Transportation costs are not deductible against gambling winnings because the IRS specifically states that expenses directly related to gambling activities can only include certain types of costs, such as entry fees. While individuals can deduct losses from gambling activities against their winnings, transportation costs often don't fall into the category of allowable deductions for gambling expenses.

In this context, entry fees are directly tied to the act of gambling itself and can be deducted. Similarly, related travel expenses that are directly associated with participating in gambling activities could potentially be deductible under certain conditions. Therefore, the option that highlights transportation costs stands out as the correct choice because it emphasizes that such expenses remain non-deductible, whereas the other options may be eligible under specific circumstances.