An accountant who formerly worked for the Cardiovascular Research Foundation (a charity) recently admitted to using company credit cards and writing checks to himself, stealing over $237,ooo. He pled guilty to larceny in New York. The judge said that she would sentence him to a maximum of six years in prison, but might lower that time depending on how much of the $237K+ he pays back.
All this is fine and dandy, but the more interesting part of this stems from the fact that he used some of the money (at least $11,000) to pay for a dominatrix in Ohio to beat him. According to the DA, he also used some of the money to pay for plane trips and car rentals, though it's unclear whether these were for him or her.
He said he would try to raise enough money to pay off the debt by selling off his house in Long Island where he lived with his wife and two children. It probably goes without saying that his wife is leaving him.
Also, since Alexander is not a citizen of the US and he pled guilty to larceny, his attorney says he will probably be deported back to India (his home country) after he finishes his sentence.
So, is this income under Section 61? Is it excludable under any of the sections? Is it deductible?