IRS Doesn’t Care for Kirk Herbstreit Burning Down His Own House
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]