After a job transfer, a worker relocated his family to a new state. But his wife didn’t like living there and returned home with the kids. When he visited over a holiday weekend, he discovered another man had been living there with his wife. He and his wife quarreled, and she left the house. While she was out, he put some of her clothes on the stove and set them on fire. The conflagration spread and burned down the house.
The husband claimed a casualty loss deduction, but the Tax Court said no, reasoning that allowing him to deduct a loss from a fire he set would violate public policy.
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