Kirk Herbstreit, Burning Houses, The IRS And You

So here’s something I didn’t know: You buy a lot with a house on it, and you want to completely rebuild. But instead of paying to have the house razed, you can donate it to your local fire department, who will then burn it down for practice. And you get a nifty tax deduction for your efforts. At least that was the plan when ESPN college football analyst Kirk Herbstreit tried to do that in 2004.

Nope, said the IRS — not only will we deny your claim for a $195,394 tax deduction on the house, but we’re charging you an additional $134,606 in back taxes and interest. So the ex-Ohio State quarterback and his wife, Allison, are suing our government and its army of bespectacled number crunchers for that combined amount. Read more…