Court Rules Against Denver Lawyer’s Car Racing Expense Deduction Appeal

The U.S. Court of Appeals for the Tenth Circuit has upheld a decision by the U.S. Tax Court, denying a Denver personal injury lawyer’s claim to deduct approximately $300,000 in car racing-related expenses as advertising. The lawyer argued that participating in car races was a strategy to garner business. However, this contention was dismissed by the court, which found that such expenditures did not qualify for deductibility under tax law. More on this case can be found in the report from Law360.