You Can’t Be Serious… Can I REALLY Deduct That?
With tax day looming (tomorrow, Wednesday July 15), we thought it would be interesting to take a look at some of the strangest deductions that have been challenged by the IRS. Note that some of them actually were deemed legitimate. Not all of the taxpayers claiming these deductions were so lucky.
Do you own a junkyard with a rat and snake problem? If you have purchased cat food in order to keep felines around, then you can deduct the cost of the cat food as a business expense.
After being prescribed exercise as medical treatment to his ailments, a man installed a swimming pool at his home and successfully deducted it as a medical expense.
Keep your receipts for Fido if you are moving due to job relocation! If this is the case, then your costs incurred from moving your pet(s) are deductible.
This one is oddly specific, but if you’re donating your time to a charitable organization and you have to hire a babysitter, then the cost of the babysitter can be deducted.
However, you should take note to avoid making these impermissible deductions.
One businessman attempted to deduct tickets to the Super Bowl to be given to clients and their spouses. The deduction was deemed impermissible because they were unable to prove that the trip was not related to business.
Another taxpayer invited clients to his daughter’s wedding and tried to deduct the entire cost as a business entertainment expense. As you might be able to guess, he was unsuccessful.
One cannabis grower listed his crop as a business expense, this resulted in the seizure of his plants and his arrest.
It is one thing to deduct your cat food, but it’s quite another thing to avoid completely paying your taxes. Make sure to forgo any possible ramifications and file your applicable taxes each year. The professionals at The Center for Financial, Legal, and Tax Planning are more than knowledgeable with regards to installment plans, offers in compromise, and other forms of satisfying tax debts with the IRS. Please contact us at (618) 997-3436 with any questions.