12 most outrageous business tax deductions
March 17, 2014 12:25 AM
1. A fur coat worn to promote a cleaning business
As one tax filer learned, youll never outfox the IRS.
2. A wedding ring
A diamond is forever, and so is a taxpayers inability to deduct the cost of a wedding ring.
3. Doggie deductions
Expenses for dogs: dogs as guard dogs, a small dog as a burglar alarm, dog adoption costs and even a dog as a dependent. CPAs heard it all this year. Thats 101 uh-uhs from CPAs and the IRS.
4. An ATV as a medical deduction for stress relief
No doubt, its fun to go out and let er rip on the trails. But, the CPA and the IRS werent buying the ATV as a medical deduction in this case.
5. Placing a business sign on a personal automobile and writing off the car as an advertising expense
The CPA had to put this message in bright lights: Not deductible.
6. A family vacation
Ahh, the exquisite sand beaches and the cool ocean breeze. We hope the family enjoyed the vacation more than the tax filer enjoyed hearing the news that it wasnt deductible.
7. A $1 million dollar deduction for a contribution of land without an appraisal
Beauty may be in the eye of the beholder, but this generous donor learned the hard way that property value is not.
8. Infant employee
Sure, you can bring your children into the family business and count them as employees. But, as one business owner discovered, children who cant yet walk or talk rarely qualify.
9. A large charitable deduction for a gift not given
One taxpayer thought that everyone could deduct a certain percentage of their income as a charitable deduction. Good news: They can! Bad news: They need to actually make the donation.
10. School lunches as a business expense
As one business owner learned, unless her child is closing business deals with other first-graders at the school, these lunches arent deductible.
11. Claiming a home theater as video conferencing equipment
As soon as a CPA got her hands on this taxpayers return, that proposed deduction was "gone with the wind."
12. Botox and tanning
One poor filer couldnt even furrow her brow upon learning that these expenses werent deductible.
