More Wacky Tax Deductions
Our recent slide show of the most outrageous tax deductions from the Minnesota Society of CPAs generated plenty of comments on the LinkedIn Accounting Group from LinkedIn members who pointed out some other weird tax deductions their clients had suggested. Here's a selection of some of the strangest ones.
One client wanted to depreciate a dead dog. He was a hunting guide. The accountant asked him how much he paid for this dog and he said nothing, so the accountant wouldn't depreciate it.
A client tried to justify deducting the cost of her fancy, expensive bras as an "image" cost related to her cosmetic sales business. Another accountant said one of her clients listed bras under "supplies" for her business. The client's comment was, "It's a legitimate expense as they help keep 'these' off my desk so I can get my work done!"
A client purchased a motorbike and tried to capitalize it and claim value-added taxes and depreciation on the bike, saying that it was a delivery bike.
An airline stewardess operated a business on the side selling oriental and Turkish rugs she would purchase on layovers in foreign countries and then resell them here in the States. She wanted to deduct the cost of dog food, veterinary services, grooming care and other associated costs for her dog that she left at home during her trips because "the dog was there to guard and protect her inventory" of rugs that she kept in her home while she was away.
A pub wanted to deduct the cost of using a microlight aircraft to fly an advertising sign over the village where it was located.
One client wanted to deduct all costs associated with impotence as medical expenses.
A traveling insurance agent wanted to claim dog food, as he kept his dog in his car for security while making visits.
A client added his children's school fees as training expenses to be absorbed by the company he runs.
A tax client asked if he could deduct his dog's medical bills, which added up to about $2,000.
One accountant claimed industrial clothing for taxi drivers for a client. The tax revenue authorities were initially skeptical until the accountant explained that the client got tire punctures, did small repairs and carried his passengers' bags. The tax authorities saw it his way and agreed.
One accountant had a client who arranged a bride from Russia and wanted to write off the dowry he needed to pay to her family and the phone calls to arrange the transaction.
One accountant said she had a client who operates a makeup business. She wanted to claim her dog as an expense, saying the dog was her mascot.
One client wanted to submit a bill for hash brownies bought from a "special bakery." The client said they were needed to relieve stress from a harrowing job.
One client wanted to deduct the cost of renting a chalet in France for her entire family's holiday. The reason was that the place made her comfortable and helped her come up with a new growth plan for the business. The year before that, it was the cost of a ski holiday and of buying "Agent provocateur" underwear for Valentine's Day.
One client keeps trying to deduct a PlayStation as a Schedule C expense, and he isn't a game developer.
A rugby player tried to claim a deduction for fast food and beer as he had to gain weight in order to earn his assessable income.
A business owner wanted to include his new speed boat as a company expense, claiming it was an employee benefit for helping the employees deal with job stress. The company was in Los Angeles. The boat was on Lake Havasu, Ariz. Can you say, "Audit me, please!"
To access our earlier slide show on the Most Outrageous Tax Deductions from the Minnesota Society of CPAs, visit http://www.accountingtoday.com/gallery/Wackiest-Outrageous-Tax-Deductions-61797-1.html.
To check out the LinkedIn Accounting group, visit http://www.linkedin.com/groups/LinkedIn-Accounting-4297170?gid=4297170&trk=hb_side_g.