Justin M. Rohrs claimed the casualty loss deduction on Form 4684) in 2005. Rohrs claimed the damage to his 2006 Ford F-350 pickup truck which he bought for $40,210. That night, he arranged for a ride home after drinking but then decided to drive to his parents’ house. That is when he had the accident when he slid into an embankment.
His carrier refused to pay on his demand for insurance given his arrest and DUI citation. The IRS also turned down his claim for a $33,629 casualty loss deduction. However, the tax judge ruled noted that Rohrs blood alcohol level was just barely over the limit: 0.09%, just slightly over California’s legal limit of 0.08%. He also noted that Rohrs had acted responsibly in getting a ride home from the party. These are valid points of mitigation. Yet, Rohr was still technically drunk under state law. The ruling could erase the bright-line rule against such recovery.
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