Most Outrageous Tax Deductions
February 21, 2012 4:49 PM
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Questionable Dependents
A taxpayer wanted to claim his elected official as a dependent because he “pays his salary.”
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Questionable Dependents
One woman wanted to include the months she was pregnant in 2011, even though she relinquished rights upon the child’s birth.
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Questionable Dependents
Yet another taxpayer wanted to claim a former spouse.
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Disallowed Charitable Donations
Another client wanted to claim the market value of whole blood that the taxpayer donated.
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Disallowed Charitable Donations
One taxpayer wanted to claim a $100,000 deduction for burning down an old cabin.
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Disallowed Charitable Donations
Sorry, but gambling losses don't count as charitable deductions.
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Disallowed Charitable Donations
Private school tuition - not deductible for charity.
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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.
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“Fido” as a Business Expense
Pets proved popular with taxpayers wanting to deduct everything from pet food to vet bills.
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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.
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Creative Medical Expenses
A rental house in Arizona for the taxpayer’s health.
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Creative Medical Expenses
An in-ground swimming pool without a doctor’s order.
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Creative Medical Expenses
A spouse’s drug habit.
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Creative Medical Expenses
Breast implants and tummy tucks.
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Investment or Not?
An attorney’s fees for a divorce were considered an “investment” by the former spouse.
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Unscrupulous Business Travel and Entertainment Deductions
A personal luxury car.
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Unscrupulous Business Travel and Entertainment Deductions
Three country club memberships.
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Unscrupulous Business Travel and Entertainment Deductions
A motor home.
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Unscrupulous Business Travel and Entertainment Deductions
The full cost of a wedding.
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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.
