ABC/ESPN college football commentator and former Ohio St. QB, Kirk Herbstreit and his wife donated their house to to the local fire department back in 2004 and the Herbstreits took a $330,000 deduction on their tax return.
In an extremely convenient coincidence, the IRS, for the first time, challenged the practice of donating individuals’ homes for such purposes the same year.
The Herbstreits were audited and paid back taxes and interest of $134,606 but are now suing the IRS to get that money back.
Apparently this is a matter of debate amongst tax wonks out there, some saying the donation is kosh and some saying it isn’t. You Michigan fans obviously hope Herbie gets stuck paying the extra scratch but the real question is whether Lee Corso is getting to the age where he’s burning down houses just because he’s totally gone senile.
Herbstreit ‘fire’ puts focus on IRS dispute [Columbus Dispatch via TaxProf Blog]
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Taxes
do auditors follow sports?
remember, auditors are way more in touch with reality than most think. Whether it be drinking or sports, we are pretty much well versed in it all.
Its the tax people you have to watch out for ;-)
I’m in tax and I love cold beer and sports, preferably together
How many Ohio State students does it take to screw in a lightbulb?
Just one, but he gets three hours of credit for it.
Go Blue.
The more interesting question is why would anyone want to rebuild a house in central Ohio…or Michigan for that matter. Go somewhere warm.
They show the comments by default on this site? Pffft. I’m going back to ATL.