Determining tax deductions can be complex for clients and advisors alike. The Minnesota Society of CPAs recently surveyed its members about the most outrageous tax deductions clients tried to claim on their tax returns.
"Creativity is a beautiful trait to embrace, but there are better places to exercise yours than with your CPA and the IRS," says MNCPA Board Chair Jeff White. "Tax laws are very nuanced, but many of the deductions our members shared from their clients would create issues with the IRS."
The following list shows that, quite often, taxpayers don't know which deductions are allowed or not. Here is the MNCPA's annual list of the most outrageous, and unacceptable, deductions.
1. Tummy tuck
One client wanted to deduct an abdominoplasty — more commonly known as a tummy tuck — as a medical expense because of the amount of money she had to spend on the procedure. No dice.