Outrageous Tax Deductions the IRS Has and Has Not Approved
If you’ve been procrastinating and today you’re rushing to get your taxes filed on time, you know you have until the midnight deadline to do so. I thought in honor of the day I’d bring you a few outrageous tax deductions the IRS has refused as well as some that were actually accepted. Here we go;
Beer good, Whiskey bad
A gas station owner gave his customers free beer and tried to write it off as a business expense. The IRS didn’t take to kindly to this one. It was refused by the IRS at first, but after tax court the final ruling said the beer was a legitimate expense and deduction.
An Oklahoma businessman wasn’t as lucky as he tried to deduct several cases of whiskey that he gave to his clients as an entertainment expense. This deduction was flatly denied.
Burning’ Down the House
A Pittsburgh furniture store owner hired someone to burn the store down. He collected $500,000 from the insurance company. Then brazenly he went on to deduct the $10,000 that he paid the arsonist as a“consulting fee”. An IRS audit two years later ended with both men in prison. (You can’t make this stuff up).
Fido’s babysitting fee
One taxpayer hired someone to come to his home to watch his dog while he was at work. He then tried to deduct the cost by using a day-care tax credit intended for children and legal dependents. Pets do not qualify...The IRS howled about this and denied the deduction.
The Bigger the Better?
Exotic dancer Chesty Love (Really that’s her stage name) wrote off the expense of having her breasts enlarged. She claimed it was a business expense since a bigger bust line would equal larger tips. The IRS agreed, declaring that her enhanced chest was a stage prop essential, obviously the claim was approved by a male IRS agent.
In an effort to gid rid of a nasty snake and rat problem, Junkyard owners set out bowls of cat food each night to attract stray cats. The cats not only at the food, they also took care of the junkyard’s unwanted guests. Because the cats made the business safer for customers, the pet food was deductible as a business expense. Yes it was the purr-fect solution!