Tax Deduction Fails
Here are the most outrageous, real life tax deductions clients tried to take on their tax returns, according to a survey by the Minnesota Society of Certified Public Accountants of its CPA members in public accounting.
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We all like to look nice, especially for business purposes. But you’re expected to arrive to work fully clothed (looking nice is a bonus).
A client, who was a humanities professor, thought he could deduct a piano. Unless the professor was providing lessons as part of a small business, this was not an acceptable deduction.
Unfortunately for one client, gambling losses didn’t qualify as a charitable donation to casinos or the Minnesota State Lottery.
One client wanted to depreciate the cost of a large boat because it was used occasionally for client entertainment. You better set sail on that idea.
Your cats may be used to keep mice out of the barn, but their bare necessities aren’t deductible. In general, pet expenses aren’t deductible.
A client wanted to deduct part of his wedding costs because more than half the guests were business-related contacts.
Botox, tanning, nails and the like do not qualify as acceptable deductions.
You can get mileage reimbursement either through your work (if offered) or the government for mileage incurred while on the clock and for business purposes, but driving to and from work is not going to stick.