Tax Lawyer's Blog

Forbes reports that a 78-year-old retired tax lawyer said he intends to challenge the IRS’s ruling disallowing a medical expense deduction he claimed for more than $300,000 he spent for prostitutes and pornography. William G. Halby of Brooklyn, N.Y. says the prostitutes and pornography were necessary to help him fight his depression:

“It’s a holistic approach to medicine,” he said. “I live alone. I have no regular sexual partner.”

A father of three adult children, Halby said he has been separated for eight years but hasn’t filed for divorce because it would affect medical insurance for his spouse.

This week, the U.S. Tax Court disallowed Halby’s federal-tax-return deductions for 2004 and 2005. Last year, the New York State Division of Tax Appeals ruled the same way for his state tax returns from 2001 to 2005.

Besides noting that Halby’s course of treatment did not have a doctor’s blessing, both tribunals said prostitution is illegal in New York State and thus as a matter of public policy couldn’t be the basis for a deduction.

Halby, who represents himself (and, therefore, has a fool for a lawyer), remains undaunted:

[Halby] said his appeals are focusing on what he said was an argument he made in legal briefs but which the judges didn’t discuss: The U.S. Constitution contains a right of privacy that protects consensual sex whether paid or not.

“I was very disappointed the judges didn’t deal fully with my constitutional claims,” he said. “If they are citing the illegality of prostitution in ruling against me, they have to rule on my position.”

Halby apparently hasn’t considered (or maybe he has) that his theory if accepted would allow a depressed pedophile to deduct the purchase of a child sex slave.

Clearly Halby is suffering from something much worse than depression. He is listening to those tiny voices in his head telling him that if he buys the hard core DVD “On Golden Blonde” the government will subsidize it for him.

I will be keeping a close eye on this case. If Halby wins, everything a taxpayer buys is a potential deductible medical expense on the grounds that it improves his mood.

Check out these potential “holistic approaches” to mental health:

• Get NFL Ticket – During football season being able to watch 4,000 NFL games and listen to ex-moron athletes wax incoherent about them is an excellent mood lifter for the wannabe jock.
• Buy a New Car – Studies have shown that a new Escalade can greatly improve your mood.
• Get a Puppy – Everyone knows that a puppy can add years to your life. Very therapuetic.
• Go Fishing – Some retired people still do this. I hear it’s very relaxing.
• Take up Golf – Chasing a little white ball around a 5 mile expanse of earth is a great way to get you out of yourself. Tiger never looks depressed.
• Plant a Garden – I read somewhere once that if you want to be truly content in life start a garden.

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