Wednesday, December 16, 2009
Following up on Friday's post, Tax Court Allows Driver Cited for DUI in Accident to Deduct Car Damage as Casualty Loss Because He 'Only' Blew a .09: in today's Wall Street Journal, Tax Court Lets DUI Driver Write Off Car Damage, by Arden Dale:
Drink, drive, crack up the car...and write off the damage on your tax return.
For one taxpayer, that scenario became reality after he appealed a decision by the IRS.
The U.S. Tax Court last week allowed the driver of a car to write off thousands of dollars of damage after he totalled it while under the influence. [Rohrs v. Commissioner, T.C. Summ. Op. 2009-190 (Dec. 10, 2009).] ...
Paul Caron, the Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law, said he found it hard to see how a court "in this day and age would treat someone driving under the influence of alcohol as not engaged in a 'willful act or willful negligence' under the tax code."
As for the judge's suggestion that Rohrs was "reasonably unaware" that he was doing something wrong, Caron says: "Really? When he had to be driven home from a party because he planned to and did get drunk? And then hops behind the wheel despite drinking at the party?"