Tax season often brings a sense of dread, but did you know it can also be a source of surprising, and sometimes downright bizarre, discoveries? While most of us stick to common deductions, some individuals and businesses have pushed the boundaries of what counts as a legitimate expense. Get ready to be amazed, and perhaps a little amused, by these real-life attempts to lighten the tax load.
Remember, these are unique situations, and it’s always best to consult with a tax professional before trying to claim anything out of the ordinary. Now, let’s dive into ten of the most unusual tax write-offs ever claimed!
10. Baby Oil for Bodybuilders
You might associate baby oil with, well, babies. But for professional bodybuilders, it’s a crucial tool of the trade. That sheen you see on stage isn’t just sweat; it’s baby oil, used to highlight muscle definition under bright lights. Since competition winnings can be a primary income source, some bodybuilders have successfully written off their bulk baby oil purchases as a business expense. This opened the door for deducting gym memberships and supplements too!
9. Everyday Meals as Business Expenses
Business lunches are a common deduction, as work discussions often take place over a meal, fostering client relationships. However, one real estate broker took this a step further by trying to deduct meals she ate alone. Her reasoning? She wore her nametag, making her available to potential clients who might approach her during her lunch break. Unfortunately for her, the tax advisor simply suggested she remove the nametag.
8. Home Office Space Perks
Working from home offers many benefits, like saving time and money on commuting. But did you know your dedicated home workspace can lead to even more savings? If your home office constitutes a certain percentage of your home’s total area, say 10%, you might be able to deduct that same percentage of your utility bills—including electricity, heating, internet, and even some landscaping costs, as a business expense. That’s a smart way to make your home work for you!
7. Pet Food and Supplies
Our furry friends are often considered part of the family, but in some cases, they can also provide tax benefits! If your pet plays a role in your business – think a guard dog, a cat for pest control at a shop, or even an emotional support animal in specific professions – their food and care supplies can become deductible business expenses. This also applies if a job relocation requires you to move your pets; they can be considered vital business associates, making their moving expenses deductible.
6. A Motorcycle for Commuting
Motorcycles often seem like a luxury item – fast, flashy, and fun. While they can be expensive to maintain, if your motorcycle is your primary mode of transportation for work, or used for more than half of your daily commute, its expenses might qualify as a travel business expense. So, riding your bike to work could save you more than just gas money, as long as you’re keeping safety first!
5. Breast Implants for an Exotic Dancer
This list keeps getting more interesting! For those in unconventional professions, unique deduction opportunities can arise. Consider the case of an exotic dancer known as Chesty Love. She successfully argued in court – representing herself, no less – that her breast augmentation surgeries were a legitimate business expense. Her reasoning was that larger implants directly correlated with increased customer attraction and, therefore, higher earnings.
4. A Swimming Pool for Medical Reasons
A swimming pool seems like the ultimate luxury, right? Surely it can’t be a tax write-off. However, if you can demonstrate to the IRS that a swimming pool is a medical necessity, the costs of the pool and its maintenance can be deducted as a medical expense. Certain conditions, such as osteoarthritis, benefit from hydrotherapy, making a pool or hot tub a viable treatment option. Having a fun place for parties is just an added bonus!
3. Hiring Your Children as Employees
Hiring family members, sometimes called nepotism, often gets a bad rap. However, in the business world, especially for small businesses, it can offer tax advantages. If you hire your child and their earnings stay below a certain threshold, they may not owe payroll taxes or even need to file a tax return. This benefits the child with tax-free income and valuable work experience. For the parent, hiring a known and trusted individual can be a smart business move, as they understand their child’s capabilities and personality fit.
2. Extravagant Haircare Costs
Maintaining a professional appearance is important, and grooming costs money. While most of us pay taxes on our haircuts and styling products, some individuals in the public eye can deduct these as business expenses. For instance, reports surfaced that former President Donald J. Trump managed to write off tens of thousands of dollars for hair styling and maintenance. The justification? These were considered expenses essential to his public image, a key component of his brand and income.
1. Deductions for Criminal Activity
This one is truly mind-boggling. Believe it or not, income earned from illegal activities is taxable. If bank robbers are expected to pay taxes on stolen money, it follows a strange logic. Even more bizarrely, if illegally earned income is taxed, then expenses related to that illegal business can also be tax-deductible. This means a drug dealer could theoretically write off the cost of weapons bought to protect their illicit product. Of course, any tax savings would be insignificant compared to legal penalties if caught, and meticulous tax records would essentially be a confession.
These examples showcase the wide and sometimes wild world of tax deductions. While it’s fascinating to see what people have claimed, it’s crucial to approach your own taxes with honesty and the guidance of a professional. Who knows, maybe you have a legitimate, albeit less exotic, deduction you’ve been overlooking!
What’s the strangest tax deduction you’ve ever heard of? Share your thoughts in the comments below!
