Crazy loopholes people have used to dodge taxes legally
As citizens of the United States, Americans are expected to perform their civic duty and pay taxes and contribute to the nation’s development. Tax avoidance is legal, but tax evasion is punishable by financial penalties and even prison time.
Americans, however, have managed to turn tax avoidance into an art, receiving tax deductions and credits for the most bizarre of reasons. Here are some of the craziest loopholes and ideas some of our fellow countrymen have used to dodge taxes. All within the boundaries of the law.
1. Drunken driver manages to write-off DUI
Luck was on the side of taxpayer Justin Rohrs, who, in 2005, slid off an embankment and rolled over with his truck. Rohrs was arrested for driving under influence and transported to the hospital. Because his car was damaged in the accident, he filed a loss claim of $33,629 for his truck, which was denied by the insurance company.
He didn’t stop there. After the insurer turned down his loss claim, Rohrs tried to claim his vehicle loss as a tax deduction on Form 1040. The IRS also denied his claim which prompted Rohrs to take his case to Tax Court, which decided in his favor.