Crazy Tax deductions allowed & disallowed

[Pat L.]

I got these from our tax prep guy.....

Crazy Tax Deductions that the IRS Allowed:

1. Parents put their child in clarinet lessons and argued that it would correct the child’s overbite. The IRS agreed and allowed them to deduct the cost of the lessons.
2. One gentleman used an Amish buggy for business purposes. He pimped it out with velvet interior, special headlights, etc. He used it to drive his clients around town and the IRS allowed him to deduct the cost of the upgrades.
3. A couple hired a babysitter so they could do charitable work. They were able to deduct the babysitting fees on their tax return.
4. A gas station owner decided to offer free beer to customers. He was able to argue, and the IRS agreed, that it could be deducted as a business promotion expense.
5. A man was looking at rental property in the mountains, which was a 5-7 hour drive. In order to avoid the driving time, he purchased a private plane. He was allowed to deduct the cost of the plane as a normal, ordinary and necessary business expense.
6. One individual was advised by his doctor to swim frequently to help relieve severe arthritis. He built a new indoor pool and his condition improved. He claimed that it was a necessary and ordinary medical expense, based on a doctor’s request, and he was allowed to deduct the operating expenses of the pool.
7. Some Dairy Business owners went on an African safari to research wild dairy cows. They told the IRS that it was an ordinary and necessary business expense to improve the quality of their dairy products.

Crazy Tax Deductions that the IRS Denied:

1. A woman wrote a $2,000 check for her gynecologist and tried to write it off as a business expense.
2. An Individual hired an arsonist to burn down his house. He collected a $500,000 insurance policy. He took the $10,000 that he paid the arsonist and tried to deduct it as a “consulting expense”.
3. One man bought mink coat for his wife and tried to write it off as an entertainment expense. He argued that it was a great conversation piece and part of the promotion cost of his business.
4. A woman attempted to deduct gambling losses as a charity donation.