Episode 4 - Witasick v. Commissioner

Deducting $1 million in renovations on a 15k sqft second home - what could go wrong?

 

A lot. Witasick was an attorney who mostly served Arizona clients. He bought this 56 acre monster home and for two years renovated it - while deducting a majority of the costs as business expenses.

 

The Court called it fraud and he served jail time. We dig into repair and maintenance, business / personal use, and unreimbursed partner expenses.