A lot of people are loading up to fire some strange tax deductions at the IRS this tax season. From flattop haircuts to human sperm donations, auditors have seen it all. Do not take these as examples, however marvel at the ingenuity – or laziness, or lunacy – that went into these crazy tries at tax write offs. Source for this article – Bizarre tax deductions to brighten your tax day by MoneyBlogNewz.
Land never found
Dallas CPA Ken Sibley told Bankrate of one client – a minister – who attempted to claim travel and entertainment expenses as tax deductions. After trying for years, the minister never found real estate investment properties, even though he was attempting to. It was not business expenditure.
A wedding is not a charity
Even if you are using business travel and entertainment expenditures, you are able to never deduct wedding expenditures. Just because you invite business clients doesn’t make the wedding business expenditure, a Massachusetts CPA said. Wedding expenditures are not considered a charitable donation either since it isn't a charity.
That’s a 30-year plan
Don Meyer is a New Jersey CPA. He said that one manager of a famous entertainer got a $2 million office building purchased. It would be business expenditure and deducted as one. The manager wanted to use it that year for it. The business manager was at a loss though since the complete expense would take over 30 years to recuperate. The law wouldn't change regardless how much money there was to spare.
Taxes for life
You can’t claim pets as security expense although you can deduct things are home for business expenses. Home security systems in general do not fly with the IRS, either, states the Hunter Group of Fair Lawn, N.J. One client tried to declare a security system under the rationale that if her home was invaded and she was slain, she’d no longer be able to pay taxes.
Deducting adult magazines will not happen
Tax deductions for dues and subscriptions to professional and trade publications do work. You need to be in that field though. As long as the 2 percent floor rule, or 2 percent of your adjusted gross income, is followed, they can be put un miscellaneous write offs, Quizlaw explained.
A Massachusetts CPA explained that a self-employed real estate agent attempting to get adult magazines written off should probably reconsider the business strategy.
On a related note, Don Meyer once had a client who happened to be a prostitute. Declaring her income was significant to her. She said her job was in "public relations."
Information from
Bankrate
bankrate.com/finance/taxes/10-craziest-tax-deductions-for-2011-1.aspx
IRS
irs.gov/businesses/small/article/0,,id=204169,00.html
Quizlaw
quizlaw.com/federal_income_tax/can_i_deduct_dues_and_subscrip.php
On deducting haircuts and sperm donations
youtube.com/watch?v=uW6HWOekZ3M
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