Strangest Tax Deductions
February 17, 2014 9:22 PM
Strangest Tax Deductions
The Minnesota Society of CPAs recently conducted its annual CPA member survey about the most strange and unusual tax deductions proposed by clients. The responses included everything from pets and wedding rings to gifts not given.
Here is the MNCPA's list of the best strangeand unacceptabledeductions for 2013.
-- Michael Cohn, Accounting Today
1. A fur coat worn to promote a cleaning business
As one tax filer learned, youll never outfox the IRS. And we cant help but wonder, what would the fox say?
Image: Shutterstock
Image: Shutterstock
2. A wedding ring
A diamond is forever, and so is a taxpayers inability to deduct the cost of a wedding ring.
Image: Shutterstock
Image: Shutterstock
3. 101 dog deductions
Expenses for dogs, dogs as guard dogs, a small dog as a burglar alarm, dog adoption costs, and even a dog as a dependent. CPAs heard it all this year. Thats 101 uh-uhs from CPAs and the IRS.
Image: Shutterstock
Image: Shutterstock
4. An ATV as a medical deduction for stress relief
No doubt, its fun to go out and let er rip on the trails. But, the CPA and the IRS werent buying the ATV as a medical deduction in this case.
Image: Shutterstock
Image: Shutterstock
5. Placing a business sign on a personal automobile and writing off the car as an advertising expense
The CPA had to put this message in bright lights: Not deductible.
Image: TonyV3112 / Shutterstock.com
Image: TonyV3112 / Shutterstock.com
6. A family vacation:
Ahh, the crystal-clear emerald water, the exquisite sand beaches, the cool ocean breeze. We hope the family enjoyed the vacation more than the tax filer enjoyed hearing the news that it wasnt deductible.
Image: Shutterstock
Image: Shutterstock
7. A $1 million dollar deduction for a contribution of land without an appraisal:
Beauty may be in the eye of the beholder, but this generous donor learned the hard way that property value is not.
Image: Shutterstock
Image: Shutterstock
8. Infant employee
Sure, you can bring your children into the family business and count them as employees. But, as one business owner discovered, children who cant yet walk or talk rarely qualify. Plus, they want everything handed to them.
Image: Shutterstock
Image: Shutterstock
9. A large charitable deduction for a gift not given
One taxpayer thought that everyone could deduct a certain percentage of their income as a charitable deduction. Good news: They can! Bad news: They need to actually make the donation.
Image: Shutterstock
Image: Shutterstock
10. School lunches as a business expense
As one business owner learned, unless her child is closing business deals with other first-graders at the school, these lunches arent deductible.
Image: Shutterstock
Image: Shutterstock
11. Claiming a home theater as video conferencing equipment
As soon as a CPA got her hands on this taxpayers return, that proposed deduction was Gone with the Wind.
Image: Shutterstock
Image: Shutterstock
12. Botox and tanning
One poor filer couldnt even furrow her brow upon learning that these expenses werent deductible.
Image: Shutterstock
Image: Shutterstock
