Uncle Sam has bills to pay, which is why, with Tax Day finally here, millions of Americans are carefully sifting through their accounts in order to see what they can deduct as a legitimate expense at the last minute.
Of course, most citizens will be totally honest in their declarations this year — but a small minority will try to push the tolerance of the authorities to the limit. Each year, there is a dedicated few who will go to enormous lengths to seek out every last loophole; and if they succeed, they could lawfully claim tax back on the unlikeliest of expenses.
With that in mind, All Finance Tax, an Irish tax consultancy company, has put together this really interesting infographic profiling some of the most unusual tax deductions that have been approved by the Tax Court. Among those featured are the entrepreneur father of an amateur motocross racer who sponsored his son through his company and successfully claimed a tax deduction of more than $160,000.
Then there’s the California woman whose $13,000 claim was approved after she alleged that noise from barking dogs near the condominium in which she worked was impeding her business. No, really.
And these are just two of the seemingly bizarre claims that made it past the Tax Court because of the resourcefulness and taxation knowledge of some citizens. Yes, there are others.
If you’re looking for additional ideas, check out the infographic below to see more crazy tax deductions that worked, despite their extraordinary nature — but, please … use them at your own risk.
Photo Credit: DonkeyHotey; Infographic: AllFinanceTax.com
Enjoyed your article. However, if I am not mistaken, in all but one of these situations (the pet travel), the IRS “said” you cannot deduct these things. It was the courts that said OK. So, maybe the title should have been “Interesting taxpayer victories in court.” I guess the IRS has acquiesced in these decisions, but since they are so fact specific you don’t want to lead your readers into thinking that all breast augmentations are deductible!!!! Speaking of deductions, an interesting article might be listing the deductions or exclusions that have the greatest monetary impact on federal taxes. However, the ones above are more fun to read about.
I love the barking dog one – that is great! It sounds tough, but I guess if you’re willing to defend yourself in court you can get away with all kinds of creative deductions.
Interesting to know. But probably too advanced for an average tax payer.
Swimming pool as a necessary medical expense? That’s creativity beyond my imagination.
About 30 years ago, my wife was giving piano lessons in a little studio …
https://lenpenzo.com/blog/id46644-grandfather-says-a-lesson-on-real-estate-development.html
… we had developed for that purpose. Her taxes were audited by an examiner “in person” (not one of those “by mail” audits), who went over her deductions, line by line.
Ordinarily, her automobile expenses for trips from home to the studio would have been a commute and not deductible. But, because the car was a hatchback and carried firewood for the studio’s heating stove, the examiner allowed it as a legitimate deduction.
It’s good to know that I’m not the only one deducting $5,000 in body oil every year. Wait what? You have to be a body builder? I just like the shine and the delicious coconut smell. D’oh!
Hi Len Penzo,
Really what you discuss here about Tax deduction by IRS is crazy.
It is very interesting that every profession pays tax for their business even breast augmentation LOL.
thanks that you write about it.