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Death n Taxes · Posted: Tue Sep 29, 2009 8:33 pm Post subject: Only in America

Not wanting to upset any of our american subscibers but I thought it would be fun to start a thread of things that can only happen in america.

The US Tax Court has recently ruled that money spent on prostitutes and pornography is a not tax deductible expense, even for a New York lawyer.

(From the Times today)
William G Halby, an established Brooklyn tax lawyer, submitted to the Internal Revenue Services a range of expenses he wanted deducted from his tax liability as “medical expenses”. Under section 213 of the Internal Revenue Code, expenses for medical care can be deducted from a tax liability if the care was for the “diagnosis, cure, mitigation, treatment, or prevention of disease” or for the purpose of “affecting any structure or function of the body”.

Halby argued that his sex expenditure was made both to treat disease and to improve some aspects of his anatomical functionality. He did not skimp when buying his medicine. In 2002, for example, he sought to deduct $111,364 from his tax liability for money spent on “therapeutic sex” in order to “relieve osteoarthritis and enhance erectile function through frequent orgasm”.

In 2005, his claim for tax deductions included $5,005 for sex books, magazines and videos, and $42,152 for prostitutes. For tax purposes, Halby kept a record in his personal journal of all visits to his “service providers” and of all the literature and equipment he bought including a claim for condoms and - unprecedented in American tax law cases - a claim for “nipple clamps”.

When almost all of his claims were refused, Halby brought a case against the Commissioner for Internal Revenue in the Tax Court. Judge Goeke noted that none of the alleged sex therapy had been prescribed by a doctor. In any event, he ruled, patronising a prostitute is illegal in New York and you cannot claim tax deductions for illegal medical treatments. Similarly, the pornography was for Halby’s “general welfare” not on prescription for any specific ailment.

While lawyers cannot claim expenses when they hire prostitutes, prostitutes can claim expenses when they hire lawyers. In 1964, the Court of Exchequer in Canada had to decide which of the expenses of running a call girl business in Vancouver were tax deductible. A claim for $1,925 for the business paying its lawyers was allowed by the court. Law courts are good places in which to plead the universal necessity of lawyers.

However, the court did gently reject a separate claim from the call girl business to reduce its tax liability by another $16,500 – the money it had paid to police as “protection fees”.

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Papa 3 · Posted: Wed Sep 30, 2009 7:31 am Post subject: Re: Only in America

gromero · Group Performer Joined: 23 Feb 2006 Posts: 3506

Only in America....can they create soooo much crap TV
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The_Pilgarlic · Listed Winner Joined: 15 Oct 2006 Posts: 827 Location: UK

Machiavellian · Group Performer Joined: 17 Mar 2008 Posts: 4398

Canadian teams can qualify for the World Series

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YAIYAM · Group Performer Joined: 21 Feb 2006 Posts: 10543

Would they be stupid enough not to leave enough time after a Golf tournment had finished to have a play off if needed before it gets dark.

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