Working at the IRS or representing clients before the IRS has its perks and advantages. Having the opportunity to observe all of the outlandish and bizarre attempts by taxpayers to assert legitimate,valid tax deductions is rare. On one hand, it certainly may involve the observance of a unique form of comedy. Here are some odd, crazy, unusual, and please note, unsuccessful tax deductions:
*Crazy Home Office Deductions
A woman that ran a home business tried to deduct what was basically her home refrigerator. She explained to her tax professional that she kept drinks in the refrigerator for customers and other business associates that came to the home office for meetings. According to the owner, this occurred four or five times a year while the refrigerator was in her kitchen and served her family.
*Back before marijuana was legal in some states for medical use, a drug dealer was conscious of the tax laws but apparently less conscious of the drug laws when he asked his tax professional about deducting business expenses from his marijuana-growing business.
*Tattoos are not legitimate medical expenses. Neither are elective medical procedures and body decorations like piercings and tattoos. But that hasn’t stopped some taxpayers from trying to take related deductions.
*Deducting your daughter’s wedding as a business expense is not a legitimate deduction. Inviting a few clients and attempting to write off the wedding as a business expense will not succeed with the IRS.
*While reviewing his client’s tax returns, a CPA found that the income amount reported was significantly higher than the current year’s. Upon further review, it was revealed that the husband and wife taxpayers had reported their children’s W-2 income on their tax return. The parents explained that they wanted to avoid preparing three separate federal tax returns, one for the adults and two separate tax returns for both of the children, thus combined all of their income into one return. No, this is not allowable by the IRS.
*One taxpayer had seen a movie where one of its characters said his doctor forced him to take dance lessons to lose weight. The taxpayer thought he could deduct his ballroom dancing costs as a medical expense.
*Shaving supplies for people required to be clean shaven for their employment are not legitimate business expenses. The wife of a fireman once asked her CPA if her husband, a fireman required to be cleanshaven, could deduct shaving supplies. A policeman once tried to write-off his flattop haircuts for the same reason.
*One chiropractor tried to write-off his dog’s maintenance expenses claiming that the dog was used as part of the holistic treatment of patients since it was brought to the office every day. Also, claiming your dog as a dependent doesn’t go very far with the IRS.
If you have questions about whether a certain expense is a legitimate deduction allowed by federal tax law and the IRS, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
