Most Outrageous Tax Deductions

The Minnesota Society of CPAs recently surveyed its CPA members to identify the most creative tax deductions proposed by their clients. Here are some of the wackiest suggestions that CPAs heard from their clients.

Questionable Dependents Questionable Dependents

A taxpayer wanted to claim his elected official as a dependent because he “pays his salary.”

Questionable Dependents Questionable Dependents

One woman wanted to include the months she was pregnant in 2011, even though she relinquished rights upon the child’s birth.

Questionable Dependents Questionable Dependents

Yet another taxpayer wanted to claim a former spouse.

Disallowed Charitable Donations Disallowed Charitable Donations

Another client wanted to claim the market value of whole blood that the taxpayer donated.

Disallowed Charitable Donations Disallowed Charitable Donations

One taxpayer wanted to claim a $100,000 deduction for burning down an old cabin.

Disallowed Charitable Donations Disallowed Charitable Donations

Sorry, but gambling losses don't count as charitable deductions.

Disallowed Charitable Donations Disallowed Charitable Donations

Private school tuition - not deductible for charity.

Disallowed Charitable Donations Disallowed Charitable Donations

Raffle tickets, even when they're for a good cause, and even when you didn't win the trip to Disney World.

“Fido” as a Business Expense “Fido” as a Business Expense

Pets proved popular with taxpayers wanting to deduct everything from pet food to vet bills.

Inflated Mileage Calculations Inflated Mileage Calculations

A handyman proposed to take a $25,000 mileage deduction, even though he had only $10,000 in revenue. He justified it by saying he drove 50,000 business miles in one year.

Creative Medical Expenses Creative Medical Expenses

A rental house in Arizona for the taxpayer’s health.

Creative Medical Expenses Creative Medical Expenses

An in-ground swimming pool without a doctor’s order.

Creative Medical Expenses Creative Medical Expenses

A spouse’s drug habit.

Creative Medical Expenses Creative Medical Expenses

Breast implants and tummy tucks.

Investment or Not? Investment or Not?

An attorney’s fees for a divorce were considered an “investment” by the former spouse.

Unscrupulous Business Travel and Entertainment Deductions Unscrupulous Business Travel and Entertainment Deductions

A personal luxury car.

Unscrupulous Business Travel and Entertainment Deductions Unscrupulous Business Travel and Entertainment Deductions

Three country club memberships.

Unscrupulous Business Travel and Entertainment Deductions Unscrupulous Business Travel and Entertainment Deductions

A motor home.

Unscrupulous Business Travel and Entertainment Deductions Unscrupulous Business Travel and Entertainment Deductions

The full cost of a wedding.

More Outrageous Tax Deductions More Outrageous Tax Deductions

To check out the Minnesota Society of CPAs' list from last year of the most outrageous tax deductions, visit http://www.accountingtoday.com/news/Top-10-Most-Outrageous-Tax-Deductions-57330-1.html.



8 Last-Minute Tax Tips

With minutes counting down to this year's tax deadline, clients (and many of their accountants) are scrambling to get paperwork wrapped up on time. But many financial and tax professionals caution that in the heat of the moment, even the most knowledgeable can forget the basics – never mind easy-to-miss, specialized strategies.

View the slideshow >>


Taxpayers Gone Wrong

Tax pros share their clients’ worst ideas about taxes

View the slideshow >>


Is Your Firm in Danger?

11 ways to protect your practice from liability

View the slideshow >>


Most Suspicious IRS Audit Triggers

The Minnesota Society of CPAs has compiled a list of red flags that could trigger an audit from the IRS if they apply to your clients' tax returns.

View the slideshow >>


Top 7 Retention Tactics

The Top 100 Firms get creative when trying to retain top talent.

View the slideshow >>


Top 10 Recruiting Tactics

The Top 100 Firms share their best strategies.

View the slideshow >>


The Fastest-Growing Firms in the U.S.

The firms with the highest 2014 revenue growth in our Top 100 Firms/Regional Leaders list

View the slideshow >>


Where the Wealthy Go to School

Looking for rich clients? Here's a ranking of the top U.S. universities by number of ultra-wealthy alumni.

View the slideshow >>


Secrets in the 1040

7 things you can learn during tax prep to build a stronger client relationship

View the slideshow >>


The Dirty Dozen Tax Scams

The IRS’s annual pick of the worst of the worst

View the slideshow >>



Advertisement

Advertisement

Advertisement

Advertisement