Judges: Hookers & Porn Are Not Tax Deductions

No matter what you may think of the health benefits of a paid companion or of an XXX-rated DVD, the New York State’s Tax Appeals Tribunal has made it clear — hookers, pills and porn do not count as tax-deductible medical expenses.

The tribunal’s ruling comes after a retired Brooklyn lawyer had tried to deduct nearly $300,000 — from just his NY state taxes! — between 2002 and 2004 “for amounts paid for erotic materials, sexually related publications, male enhancement pills, and miscellaneous services performed by prostitutes.”

The same lawyer had been shown the door by the U.S. Tax Court last year, when they disallowed a $120,000 write-off on his federal taxes for 2004 and 2005. In that situation, the man, who claimed he was fighting depression by pursuing “a holistic approach to medicine,” was fined an additional $4,000-related penalty for not knowing better.

The Tax Appeals Tribunal’s decision added another $23,000 to the lawyer’s bill in interest and penalties, but he says they might as well try to get blood from a stone.

“Under New York law, I am insolvent,” the lawyer told Forbes. “I have no assets. I rent. I live on a pension that can’t be seized.”

No Medical Deduction For Hookers and Porn, Judges Rule [Forbes.com]

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  1. Loias supports harsher punishments against corporations says:

    “Under New York law, I am insolvent,” the lawyer told Forbes. “I have no assets. I rent. I live on a pension that can’t be seized.”

    Sounds like a lawyer managed to beat the system…. again.

    • partofme says:

      Isn’t that the only reason to learn any system? So you can beat and/or control it.

    • cloudedknife says:

      yes, we must now eliminate all pensions because evil tax dodger lawyers have ruined that!

      it doesn’t take a lawyer to game a system, it just takes a little imagination and pure dumb circumstance. Speaking as a soon to be lawyer (16hours til I get my bar results!!!), I can honestly say I expect to spend more time thwarting those who wish to game the system than I will actually trying to game the system my self.

      • Daemon Xar says:

        Good luck–I hope you get the results you’re looking for (and that you didn’t just jinx yourself).

        I’ve done the waiting thing for two different states, and hopefully won’t ever have to again.

      • 3skr1mad0r says:

        That’s the talk of new lawyer blood, full of ideals and the want to help.
        But beware. Anger, fear, aggression. The dark side are they. Once you start down the dark path, forever will it dominate your destiny.

  2. apd09 says:

    I guess the old adage works in this case just like it works when trying to negotiate lower costs in store, “you never know unless you ask”.

    Then again, he did not just ask he went to court fighting for it.

    • Loias supports harsher punishments against corporations says:

      “Better to ask for forgiveness than beg for permission”

  3. comatose says:

    That picture is priceless..

    • The cake is a lie! says:

      Werd…. I just spent awhile staring at it trying to decide if I was looking at porn or just a partial shot of a man about to live his dream…

      • apd09 says:

        There is definately a nipple missing in the picture. There is a girl on the side of the couch, and they to the right is another female who is upside down. Look at the belly button piercing, then see the arm coming from the couch. That girl is missing a nipple or else it is very oddly placed on the side of her breast.

        yeah, I took the time to actually see if it was SFW or not, and it is.

    • INsano says:

      …the hell is the dude doing with his pants still on?!?

  4. Darrone says:

    he has NOTHING to lose (if in fact he is correct about the pension). So why not? I mean, if he won, he immediately gets a statue erected of him. Pun most certainly intended.

  5. Angus99 says:

    Insolvent? He’s got a new show on CNN!

  6. RandomHookup says:

    Actually, you could change the headline to:

    Judges, hookers and porn are not tax deductions

  7. An_Album_Cover says:

    Would it be appropriate to suggest that the system should throw him in prison so he can earn that $23k from Bubba?

    (I have *no* tolerance for tax cheats who earn enough that they can easily live within their means)

  8. Foot_Note says:

    insolvent, but claims 300K for hookers? what is wrong with that picture?

  9. Pax says:

    … and yet, people point at the disabled, who’re on foods stamps, as being scoundrels and worse …

  10. c!tizen says:

    “Judges: Hookers & Porn Are Not Tax Deductions”

    SInce when? What happened to my beloved country?

  11. evnmorlo says:

    This guy is in his 70s, which gives me hope for the future.

  12. Happy Tinfoil Cat says:

    … and now plans to screw the IRS out of the money.

  13. EverCynicalTHX says:

    ..Damn another write-off I needed – foiled!

  14. sopmodm14 says:

    what a dumbass

    he should’ve known that there was no law….he should have pushed to make it one or something

    he also should’ve known…..you know, being a judge and all that ….. that prostitution is illegal in NYS, so in essence, he was knowingly breaking the law

    and he wants a deduction on top of it all !!

    guys got balls all right

    they should kick him out of NYS, so he can take his “involvent” status and shove it

  15. EarthAngel says:

    If it were the other way around…if it were the prostitute that were itemizing these deductions, would the court strike it down?

  16. aaron8301 says:

    Well there goes my entire medical plan…

  17. Mogbert says:

    How do you try to deduct $300,000 and then try and write off $120,000, and then he still claims to be insolvant? I realize that was years ago, but $300,000 would have lasted me from then until now…

    Maybe some people deserve to be in debt to the IRS, although I’d be willing to bet that he has a few accounts in the Caymans and Switzerland.

  18. aaron8301 says:

    OH, and only a fool spends money on prostitutes. Buying a girl drinks at a bar is much cheaper, and you usually get an entire night out of it.

    But then again, you don’t pay a prostitute for sex; you pay her to leave afterwards. Buying a girl drinks at a bar sometimes leads to (eventually) buying rings, and after that you can neither buy prostitutes or drinks!

    *ducks*

  19. enomosiki says:

    “‘”Under New York law, I am insolvent,” the lawyer told Forbes. “I have no assets. I rent. I live on a pension that can’t be seized.”‘

    That’s just one way of describing what parasite is.

    Disbar him and cut off his pension.

  20. Why is this on Consumerist? says:

    Guy’s a player, clearly. I mean, damn. He’s got gigantic balls, as well. I wish him the best. Sounds like he’s having fun and not hurting anyone. And he’s keeping us entertained. Truly an American hero.

  21. gman863 says:

    If you want to make hookers a legit tax deduction I see a possible way around this in the future:

    A pharmacy filled with lovely ladies and bedrooms charges $500 per Viagra tablet and the receipt prints out a CVS-type coupon for a free “happy ending”.

  22. rbb says:

    Number nine, is that you?

  23. Omali says:

    Porn is not a medical expense, because insurance would not allow unlicensed physicians to make a protein transplant in an unsterilized workplace.

    I’m so sorry, Consumerist.

  24. Kid Notorious says:

    Must… Not… Fwap…

  25. banmojo says:

    Scientific research has shown that daily ejaculation helps reduce both BPH AND prostate cancer. Fact.

    Research has also shown that in some cases of erectile dysfunction, types of pornography can help the psychological portion of said ED.

    Finally, in cases of depression, having sex with SAFE partners on a regular basis is highly recommended if possible.

    Sooooo, summing up, at least part of his expenses should truly fall under ‘medical expenses’ imho.

    Remember men, ‘a tug a day keeps the doctor’s index finger away’ :^))