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Tax Court Rules Prostitutes Aren't Deductible
Forbes ^ | 9/15/2009 | William P. Barrett

Posted on 09/15/2009 8:40:24 PM PDT by Saije

The U.S. Tax Court ruled Monday that Brooklyn, N.Y. tax lawyer William G. Halby, 78, had no legal basis to deduct prostitutes and pornography as medical expenses on his federal tax returns. Judge Joseph Robert Goeke upheld the Internal Revenue Service's determination that Halby owed $21,000 in back taxes plus $4,000 in accuracy-related penalties for his disallowed write-off of $120,000 of what the court delicately (and in quotations) called "service providers" as well as pornographic materials.

According to the opinion, Halby did maintain careful records as is generally required for deductions. He "kept track of these visits in a journal," the court said, logging in dates, names and amounts, although there's no mention in the opinion that the prostitutes provided receipts. To his tax return's Schedule A, used to claim medical deductions, Halby added an attachment that provided "only vague descriptions of the types of costs" he was trying to deduct.

According to the Tax Court opinion, Halby, who represented himself, argued the costs should be allowed because of "the positive health effects of sex therapy." But the court said no doctor had prescribed this treatment for Halby, who also "did not discuss these visits with his doctors afterwards to determine their impact on his health."

Accordingly, the court ruled his "payments to various prostitutes were personal expenses not prescribed by a doctor and not intended to treat a medical condition." The court also noted: "Patronizing a prostitute is illegal in the state of New York."

In the two years at question in the case, 2004 and 2005, Halby spent $108,000 on prostitutes, $7,000 on materials and $5,000 in what the court called "bank and finance charges incurred in connection with loans used to pay for the claimed medical expenses."

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy
KEYWORDS: acorn; court; deductions; fail; hannahgiles; irs; lawyers; napl; prostitutes; taxes
Maybe he was getting tax advice from ACORN.
1 posted on 09/15/2009 8:40:24 PM PDT by Saije
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To: Saije

or Elliot Spitzer.


2 posted on 09/15/2009 8:41:06 PM PDT by reg45 (Be calm everyone. The idiot children are in charge!)
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To: Saije

ACORN may appeal this ruling /sarc


3 posted on 09/15/2009 8:43:48 PM PDT by GeronL (http://libertyfic.proboards.com ............. http://tyrannysentinel.blogspot.com)
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To: Saije; NFHale; Gilbo_3; Squantos; hiredhand; fieldmarshaldj; Clintonfatigued; Impy

4 posted on 09/15/2009 8:44:15 PM PDT by rabscuttle385 (So many Communists, so little time.)
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To: Saije

Clearly, he didn’t get help from ACORN, professionals on the subject.


5 posted on 09/15/2009 8:45:12 PM PDT by Uncle Miltie (NEXT: Sting ACORN on Voter Registration.)
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To: Saije

Damned if ya do - Damned if ya don’t.

Just one more reason to abolish the IRS.


6 posted on 09/15/2009 8:49:05 PM PDT by Tainan (Cogito, ergo conservatus)
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To: Saije

“$108,000 on prostitutes”

You could probably terraform a distant planet by atomizing him into the atmosphere.


7 posted on 09/15/2009 8:54:28 PM PDT by TheZMan (White male, short hair, armed Patriot. Keep pushing.)
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To: Saije; reg45; rabscuttle385; Tainan; GeronL; Slings and Arrows; null and void; Lazamataz; ...
*PING* to those not yet on the thread.

Clearly, this was a case of "professional jealousy."

Everyone knows it's the IRS's job to screw the taxpayer.

Cheers!

8 posted on 09/15/2009 8:55:49 PM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: Saije

Can’t he claim the trifecta? Invoke the Rangel Rule, ‘The Dog Ate My TurboTax’ Giethner Rule, and the new ACORN ‘Prostitutes as Dependents’ Rule.


9 posted on 09/15/2009 8:57:06 PM PDT by SERKIT ("Blazing Saddles" explains it all.....)
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To: Saije
..payments to various prostitutes were personal expenses not prescribed by a doctor and not intended to treat a medical condition."

um...I think i see a loophole, for both parties.
10 posted on 09/15/2009 9:03:27 PM PDT by stylin19a
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To: Saije

$108,000 in two years is about $1040 (ironic) per week... almost $150 per day. If he was addicted to crack cocaine, he’d spend about the same amount, I’d venture to guess. Almost amazing for a 78 year old, actually. That little blue pill is pretty potent stuff, apparently.


11 posted on 09/15/2009 9:16:24 PM PDT by Teacher317
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To: Saije

We don't pay taxes on our Senate brothels ... or anything else.”


12 posted on 09/15/2009 9:23:43 PM PDT by Diogenesis ("Those who go below the surface do so at their peril" - Oscar Wilde)
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To: Saije

If only he had gone to Obama’s friends at ACORN for tax advice. The would have told him, “You can’t SAY prostitution. Call the prostitutes consultants or marketeers or performance artists.”


13 posted on 09/15/2009 9:32:11 PM PDT by Above My Pay Grade
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To: Saije

LOL, I thought this was a satire on ACORN.

File under: What’s the matter with Brooklyn?


14 posted on 09/15/2009 9:33:03 PM PDT by jocon307 ( We're dealing with COMMUNISTS here, folks!)
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To: Saije
...there's no mention in the opinion that the prostitutes provided receipts.

Oh, man. He's done right there. Only the government gets to do that sort of thing without a receipt.

15 posted on 09/15/2009 9:35:30 PM PDT by Billthedrill
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To: Saije

Maybe he can get ACORN to help with his appeal.


16 posted on 09/15/2009 9:46:37 PM PDT by TBP (Obama lies, Granny dies.)
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To: Saije

Now that is thnking outside the box...


17 posted on 09/15/2009 10:33:41 PM PDT by goat granny
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To: Saije; All

Damn !!!

There goes next year’s tax refund I wuz countin’ on ...


18 posted on 09/15/2009 10:58:19 PM PDT by Lmo56
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To: rabscuttle385; fieldmarshaldj
"..had no legal basis to deduct prostitutes and pornography as medical expenses"

Tha's BS, it's a proven fact, guys will get b*ll cancer if they aren't relieved at least once in while. Poor old Mr. Halby.

19 posted on 09/15/2009 11:09:30 PM PDT by Impy (RED=COMMUNIST, NOT REPUBLICAN)
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To: grey_whiskers; MeekOneGOP; Conspiracy Guy; DocRock; King Prout; Darksheare; OSHA; martin_fierro; ...
Everyone knows it's the IRS's job to screw the taxpayer.

They're just jealous because people enjoy it from prostitutes.


20 posted on 09/15/2009 11:24:28 PM PDT by Slings and Arrows (Crazy is the new sane.)
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To: Saije
Somebody should inform COI (fmrly known as ACORN). What is it with ACORN folks and sexual exploitation of children? If I'm not mistaken, several months ago, a senior COI (fmrly known as ACORN) member was caught leering at a 16 year old Brazilian girl's heiny.
21 posted on 09/16/2009 1:25:38 AM PDT by Grizzled Bear ("Does not play well with others.")
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To: Saije

Hey, don’t knock it until you’re over 70...like me.


22 posted on 09/16/2009 1:31:48 AM PDT by norge (The amiable dunce is back, wearing a skirt and high heels.)
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To: Saije

The irony is quite rich with this one...

ACORN, sorry... I mean — COI — will not be happy about this now.


23 posted on 09/16/2009 2:41:51 AM PDT by LibertyRocks ( http://LibertyRocks.wordpress.com ~ ANTI-OBAMA STUFF : http://cafepress.com/NO_ObamaBiden08)
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To: Slings and Arrows; Izzy_Box; All
The following was the conversation in our house a few minutes ago. IB is my daughter, LR is me.

IB: "COI, huh?
LR: "Yeah, that's ACORN's new name."
IB: "What does that stand for?"
LR: "Community Organizers International"
IB: "Oh, for some reason I thought you were going to say, Community of Idiots."


:)
24 posted on 09/16/2009 2:48:42 AM PDT by LibertyRocks ( http://LibertyRocks.wordpress.com ~ ANTI-OBAMA STUFF : http://cafepress.com/NO_ObamaBiden08)
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To: Quix; Marysecretary; Joya; milford421; Cindy; nw_arizona_granny; Velveeta; CindyDawg; backhoe; ...
Check out post #24, for a chuckle, too. :)

C.O.I.*

The Community of Idiots
formerly known as
A.C.O.R.N.


25 posted on 09/16/2009 2:59:39 AM PDT by LibertyRocks ( http://LibertyRocks.wordpress.com ~ ANTI-OBAMA STUFF : http://cafepress.com/NO_ObamaBiden08)
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To: LibertyRocks

INDEED.

THX.


26 posted on 09/16/2009 5:44:51 AM PDT by Quix (POL Ldrs quotes fm1900 2 presnt: http://www.freerepublic.com/focus/religion/2130557/posts?page=81#81)
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To: Saije

They aren’t???? Damn ACORN people. That’s the last time I go to them for tax advice.


27 posted on 09/16/2009 5:47:51 AM PDT by yazoo (Conservatives believe what they see. Liberals see what they believe.)
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To: grey_whiskers
Tax Court Rules Prostitutes Aren't Deductible

What about using them as dependents?

28 posted on 09/16/2009 8:32:28 AM PDT by snarks_when_bored
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To: LibertyRocks

You’ve raised a good kid.


29 posted on 09/16/2009 9:16:36 AM PDT by Slings and Arrows (Crazy is the new sane.)
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To: Lmo56

No it doesn’t! It sounds like all you have to do is to find a doctor or a shrink who will recommend “sex therapy”. Then you have to check in once in a while to see if the therapy is “working” or if it needs to be “modified” somehow for better effect! There is still time left in the year to get those things handled.


30 posted on 09/16/2009 9:44:43 AM PDT by AFPhys ((Praying for our troops, our citizens, that the Bible and Freedom become basis of the US law again))
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