Every year during tax season, the goal for most taxpayers is to lower their tax burden to the bare minimum. In terms of tax deductions, the creativity that people have used can be both brilliant and, well, a little 'wacky'.
The U.S. tax code allows for legitimate tax deductions that include charitable donations and paid school loan interest among others. Then, there's that gray area that can be left up to interpretation — from a bodybuilder writing off body oil to an exotic dancer claiming breast implants as a business expenditure.
Learn about some of the wackier tax deductions through the years.
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4. 1 BODY OIL
A professional bodybuilder wrote off
his body oil as a business expense. The
IRS wasn’t having it, but the Tax Court
let it slip by.
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5. 2 BREAST IMPLANTS
Cosmetic surgery costs are usually
non-deductible. That didn’t stop exotic
dancer, “Chesty Love,” from challenging this
rule. The Tax Court considered her 56-FF
implants a legitimate business justification.
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6. 3 SWIMMING POOL
One taxpayer had emphysema, and his
doctor ordered an exercise regime. He
installed a pool and used it twice a day
to improve his lung capacity. The Tax
Court allowed it as a medical expense.
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7. 4 RESTITUTION IN FRAUD
One dentist’s wife kept the books and billed insurers
for work that the dentist wasn’t even performing. She
went to jail, leaving him to repay everything.
He deducted his restitution as a business expense
again. The IRS didn’t approve, but the Tax Court
permitted the deductions.
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8. 5 PAYING GIRLFRIENDS
One man needed someone to manage his
rental properties and hired his girlfriend. She
was in charge of tasks such as finding furniture,
overseeing repairs, and running his personal
household. He went to Tax Court and won.
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9. 6 PRIVATE PLANE
One couple bought their own
plane and used it to check on
their rental condo daily. The IRS
didn’t think it could be written
off, but the Tax Court allowed it.
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10. 7 PET FOOD
Another couple owned their own junkyard. They
would routinely place cat food out to attract wild cats.
The cats helped make their junkyard safer by killing
off the snakes and rats. Their food was written off as a
business expense. The Tax Court allowed it even
though the IRS thought it was ridiculous.
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11. 8 DRIVING DRUNK EXPENSES
One man drank too much at a party and arranged a
ride home. He thought he would be alright to drive a
few hours later but ended up driving off of the road
and was arrested for DUI. He had to pay for the car
damages when insurance wouldn’t and proceeded to
deduct his repair costs and get away with it.
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12. 9 BABYSITTING FEES
Babysitters are generally personal expenses,
but not in this case. One mother was able to
deduct her babysitting fees because she
used that time to do volunteer work. The Tax
Court logged it under charitable
contributions.
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13. 10 MOVING A PET
Sometimes the tax law permits writing off moving
expenses, if you meet certain criteria. This
includes the cost of moving your pet, as it is
considered part of your personal effects.
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14. 11 HOME LANDSCAPING
One man used his home for business meetings. In
order to keep up appearances, he had to keep his
yard maintained and repair his driveway. When he
deducted the costs, the IRS didn’t allow it, but the Tax
Court allowed a portion of the cost to be written off.
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15. 12 FREE BEER
An owner of a gas station decided to
give away beer instead of trading
stamps. He deducted the beer as a
business expense.
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FREE
BEER
16. 13 BERMUDA TRIP
Business conventions in Bermuda
are deductible without having to
show that there was a special
reason for holding the convention
in that location.
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17. 14 SEX CHANGE
The Tax Court qualified $14,500 to be deducted
from $22,000 of medical expenses from
surgeries changing one man into a woman. They
allowed the deduction because the procedure
helped cure a disease.
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18. 15 MAKING MOVIES
One woman worked on a documentary film
for six years. She wrote off her six-figure
losses, and after some back and forth, the Tax
Court eventually allowed it. The Tax Court
claimed that she acted in a business-like
manner, rather than pursued a hobby.
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19. 16 DEER MEAT
If you happen to hit a deer while driving in
South Carolina, the state will give you a $50
tax credit for every butchered deer that you
donate to charity.
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20. 17 CLARINET LESSONS
One person wrote off her son’s clarinet lessons after
she claimed that they were used to help fix the
child’s overbite. The IRS approved the deduction.
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21. 18 AFRICAN SAFARI
Dairy farmers claimed a tax deduction on
their trip to the African Savanna because
they went to learn about animals relevant
to their business.
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22. 19 DEADBEAT FRIENDS
Some taxpayers have chosen to collect the
money they lent to friends and never got back
by writing it off as a tax deduction.
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$
23. 20 OSTRICH DEPRECIATION
An ostrich farmer in Louisiana was able to depreciate
the cost of his ostrich. As livestock ages, farmers can
deduct the depreciated value from their income if
the animals were used for breeding.
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24. Get your taxes done right, at the
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25. The above information is intended to provide generalized financial information designed to
educate a broad segment of the public; it does not give personalized tax, investment, legal
or other business and professional advice. Before taking any action, you should always seek
the assistance of a professional who knows your particular situation for advice on your
taxes, your investments, the law or any other business and professional matters that affect
you and/or your business.
http://www.forbes.com/sites/robertwood/2012/03/21/still-more-strange-tax-deductions
http://www.forbes.com/sites/robertwood/2012/03/19/strange-but-legit-tax-deductions
http://www.forbes.com/sites/robertwood/2012/03/20/more-strange-tax-deductions
http://www.kiplinger.com/article/taxes/T054-C000-S001-extraordinary-tax-deductions.html
http://www.usnews.com/news/slideshows/10-bizarre-tax-deductions
https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/Top-10-Oddball-Tax-Deductions/INF12065.html