Most of us go straight during tax time. However, a significant number of inventive and simply strange tax deduction applications are rejected by the IRS each year.
Some are so strange that they are completely legal, while others are disregarded out of hand.
Every year, the IRS gets hundreds of tax claims, some of which are so ridiculous they might be included in a stand-up act. Continue reading to learn more about these tax deductions and how they may impact you.
These Infrequent but Lawful Tax Deductions Make No Sense to the IRS
Whether it sounds plausible or not, the IRS does not see any reason to allow deductions for things like body oil, swimming pools, and cat food, but in certain circumstances, they have been allowed.
The organization also acknowledges that each scenario is different by the time it does not promote breaking the law.
Let’s examine some of the top ten most intriguing deductions that have made IRS officials and tax experts pause.
The IRS doesn’t understand deductions. Or Does It?
The following are the most intriguing (and eventually authorized) deductions that leave you wondering what else might be eligible:
- Swimming pool for therapeutic purposes: Because of the aquatic therapy that was recommended by their physician, a taxpayer with severe arthritis was able to claim a deduction for the installation of a swimming pool. There were no justifications for not having documentation and a direct health benefit.
- Cat food as a business expense: To attract stray cats and keep rats away, a junkyard owner utilized cat food. It was accepted in some way since it aided with property maintenance.
- Using breast implants to build a company’s image: A dancer claimed that her breast implants were necessary for her career and was able to deduct them as a business cost. It was approved by the IRS as a “stage prop.”
- Clarinet lessons to correct an overbite: When a doctor said that playing the clarinet would straighten teeth, taking away a child’s music lessons achieved just that.
- Body oil for bodybuilders: One professional bodybuilder claimed to have deducted body oil as a business expense for contests, straight out of a muscle magazine. Accepted with final receipts.
- Complete care for the dog: A man with a service dog’s medical needs deducted food, grooming, and veterinary expenditures. When these are connected to a medical condition, the IRS permits them.
- Costs of babysitting while volunteering for a charity: When volunteering for a charity, a taxpayer can deduct the expense of hiring a babysitter. The deduction was allowed because the voluntary effort was unpaid.
- Wigs for emotional support: The expense was deducted when a patient receiving medical care required a wig to help them deal with hair loss. This is essential for medical reasons.
- A private aircraft for client visits: The expense of flying his jet to visit clients was subtracted by a business adviser. For travel documents to be accepted, they had to be perfect.
- Landscaping a business house: Because they utilized their home to create material for their YouTube channel about gardening, a couple subtracted the expense of landscaping their home. Before you get too creative with your taxes, think twice.
Although the aforementioned list may cause you to reconsider, it is important to remember that it must be supported by appropriate documentation.
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To be safe, seek advice from a tax expert if you’re pushing the edge. The same rule does not necessarily apply to your situation just because someone else made it through.
Even though the IRS has allowed some odd deductions, audits are serious business, and there is never a certainty in the end. The law occasionally presents a different picture, even though the IRS believes that many deductions are absurd when taken at face value.
Understanding the purpose of each cost, demonstrating how it relates to your income or health, and guaranteeing complete transparency are crucial.
