TAX DAY COUNTDOWN: Crazy Tax Deductions People Make to Save a Buck
The countdown to tax day is underway. The pressure can be intense — intense enough to drive people mad. Here are 6 crazy tax deductions people have made to save a buck.
Financing Fire A taxpayer in Pennsylvania paid an arsonist $10,000 to burn down his furniture store. H&R Block reports the taxpayer claimed the insurance money he received from the fire as income and the arson as a deduction.
Bosom Bill One of Bankrate.com’s favorite deductions was for breast implants. The tax payer was a saleswoman who wanted to deduct the $14,000 surgery as a medical expense. The claim was denied. Had she been an exotic dancer, it may have gone over as a business expense filed under “stage prop.”
Wee Wages According to the Minnesota Society of Certified Public Accountants, one person claimed an infant as an employee. His CPA did not let this one slide.
Canine Cash According to GROCO CPA & Advisors, a tax payer claimed his dog as a dependent. He even claimed his doggy daycare expenses as childcare costs. His arguments were denied.
Feline Funds A junkyard owner claimed cat food as a business expense. The tax payer argued he used it to attract feral cats. The cats, in turn, took care of the rat and snake problem at the property making it safe for customers. Kiplinger’s Personal Finance Magazine reports the deduction was accepted.
Traveler’s Check Bankrate.com says a painter claimed a trip to Brazil as a business expense. When questioned about the expense, he said he went to Brazil to buy spatulas.
Taxes are a serious business, and sometimes the IRS needs a laugh, but there is such a thing as being too creative with your costs. Err on the side of caution.