Can you believe it? Fees for arsonists do not qualify as a tax deduction! The average taxpayer would never think of such a thing, but people have come up with some very odd tax deductions. In truth, there are a lot of opportunities to write off deductions that most taxpayers do not even consider.
For example, did you know you could deduct a TV and cable service used solely to help students learn Spanish?
Do you have a new baby? It’s a busy time, yes. But don’t forget to take that new deduction for your growing family. Many new parents — in the throes of a newborn’s needs — do forget, and can you blame them with all their round-the-clock chores? Even so, it’s never too early to start tax planning with that new arrival in mind.
On the subject of babies, you can depreciate an ostrich used for breeding as a tax deduction, but not a steer. The livestock must be able to breed in order for it to qualify. (Who thinks up these crazy rules?)
And, if your dog protects your house, the food you buy to feed your pooch may be deductible as a security expense. But, don’t try to use Fido as a tax deduction on your personal taxes.
Did your dentures get flushed down the toilet? Maybe there is an “act-of-God” casualty loss in there somewhere! Some ingenious taxpayer may have attempted to claim it on a tax return.
The creative ways people have devised to write off taxes continue to amaze those revenuers. And just in case you are fortunate enough to own a Rolex, don’t attempt to write it off as a time monitoring system, as one doctor attempted to do. Creatively naming those “iffy” deductions may get you into hot water with the IRS.
Are those rules for claiming deductions confusing? Yes, they are very confusing. Thankfully there’s a way to help you keep track of your deductions as you make those tax-deductible purchases. Now that’s a reason to no longer dread the task of preparing and filing your small-business tax forms. Now you can rest on cloud nine!