You may think the tax deductions below are April Fools’ Day jokes, but they all somehow made their way to the Internal Revenue Service – and all of them were approved!
1. Pet Food
According to Fox Business, the IRS allowed one family to deduct the cost of cat food from their tax payments. The family had let the cats loose on the junkyard they operated to eliminate snakes and rats; the cats made the place of business safer for commerce and thus their pet food was considered a business expense.
2. A Pool
TurboTax reported that a tax court allowed one individual to deduct the cost of a pool from his tax payments because his daily swims helped develop an exercise regime. The pool’s primary purpose was thus for medical care, which made it eligible for deduction; keep in mind the possibility of obscure medical write offs.
3. An iPhone
A taxpayer was able to get a doctor’s prescription for her iPhone because a car accident had left her with cognitive issues. The device allowed her to not rely on a personal attendant, and with scheduling and other apps, her iPhone helped her function and heal.
4. Bodybuilding Oil
Business Insider reported that Corey Wheir, a part-time bodybuilder, sued the IRS in 2004 after it had disallowed the body oils he’d written off as a business expense. Wheir won the suit and the oils were successfully claimed as a deduction.
5. A Trip Around-The-World
One taxpayer successfully wrote off $50,000 worth of world travels. The trips were rendered as a business expense because he had written a book about the travels – even though the book was published by an obscure organization and only sold 20 copies.
Remember, tax day is right around the corner! If you haven’t started on your taxes, visit our top tips for small business owners.
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