In another attempt to claim a deduction out of the ashes of a fire, a taxpayer attempted to deduct the cost of hiring his arsonist. This enterprising individual decided that insurance wasn’t good enough by itself. he decided to also attempt to cheat the government by deducting the $10,000 that he paid to the arsonist. The deduction was disallowed under the same set of rules that say that you can’t deduct illegal bribes, kickbacks, or other illegal payments.
If you need help with tax deduction give our office a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.