Silver Lining for DUI Driver: Tax Court Allows $33K Writeoff for Totaled Truck
Expecting to drink at a party several years ago, Justin Rohrs arranged a ride home in advance with another driver. But after he got home, he decided to drive over to his parents’ home in the Ford F-350 pickup he’d paid about $40,000 for only months earlier.
En route, he slid off an embankment, rolling and totaling the truck. His insurance company refused to pay for the damage, pointing to the driving-under-the-influence citation he was given concerning the accident. And when he attempted to write off the $33,629 value of the F-350 on his Form 1040, the Internal Revenue Service nixed the casualty loss deduction, pointing to a willful negligence bar, reports the Wall Street Journal.
But a silver lining eventually resulted: Last week the U.S. Tax Court reversed the IRS ruling on the willful negligence issue, allowing Rohrs to take his $33,629 casualty loss, according to the newspaper.
In a Dec. 10 written opinion, the court said Rohrs’ blood-alcohol level of 0.09 percent—just a little over California’s 0.08 percent legal limit—negated willful negligence. The judge also applauded his having taken responsibility for arranging a ride home from the party the night of the accident.
Rohrs couldn’t be reached for comment by the WSJ on his tax court win. However, experts said he should consider himself lucky.
