Drinking and Driving: Taxpayer Allowed to Take Casualty Loss for Car He Wrecked, 80 CPA J. 50 (July 2010):

A recent controversial Tax Court case, [Rohrs v. Commissioner, T.C. Summ. Op. 2009-190 (Dec. 10, 2009)], dealt with the question of whether a person who is driving under the influence may in some circumstances be entitled to take a casualty loss deduction for damages resulting to his motor vehicle. Section 165(a) allows a deduction for losses not compensated by insurance or otherwise. Generally, damages to a motor vehicle may not be the subject of a casualty loss when the damage is due to a willful act or willful negligence, under Reg. § 1.165 -7(a)(3). But is driving a motor vehicle while only slightly intoxicated considered willful negligence by the Tax Court? It certainly is considered willful by the IRS and most public commentators on the case, and this was the issue dealt with by the Tax Court. ...