Posted on 02/09/2017 11:02:33 AM PST by Red Badger
That trek to South Dakota on your Harley isn’t going to get you a tax deduction. Sorry.
Maybe that seems obvious, but someone actually tried to write that off on their taxes, according to the Minnesota Society of Certified Public Accountants. In their defense, the person wore a company shirt and tried to call it an advertising expense.
There’s plenty more where that came from. The Society of CPAs did a study on the ridiculous things people have tried to use as deductions – and it’s pretty funny.
Business deduction fails:
Someone tried to write off their pop-up camper, calling it a business “construction trailer.”
Similarly, a real estate agent wanted to deduct a riding lawn mower for the sole purpose of trimming the grass around “For Sale” signs.
Another thing that’s not a business expense: attending a graduation party or wedding with someone you work with. Sorry.
Iffy charitable donations:
There was also a person who gave a chainsaw to a hospital and tried to say that was a charitable donation. Not quite.
And a generous grandparent paid for their grandchild’s private school tuition, then tried to write it off as a donation – it didn’t work. Don’t try to write these off, either
When an individual moved from California to Minnesota, they tried to write off the cost of a winter coat and snow blower, calling them “moving expenses.” There might actually be an argument there.
People have also tried deducting their hunting properties and cosmetic enhancements – like augmentations, manicures, etc.
Lastly, don’t claim your pets. No matter how much you consider Mr. Meow and Fido family, they aren’t legally dependents. They’re not security expenses either, no matter how ferocious your fur baby is.
Doing your taxes right:
There are a lot of things you can deduct from you taxes. They just need to be legitimate, and you’ll need to back up your claims.
GoBankingRates has a whole list of things you can deduct – like job search expenses, medical costs, and home renovations (under certain circumstances).
TurboTax has its own recommendations here and here.
For more information on everything taxes, click here.
“We need to abolish the income tax anyway.”
That is the basic truth.
True story...
As a CPA I had a minister try to deduct his wife’s birth control pills as a “Housing Allowance Expenditure.
When I asked him why, his response was “If I don’t buy the birth control pills I will need a bigger house.”
Too Funny, but very true.
About 35 years ago when I first hung out my shingle as a CPA, I had a large sign hand painted to hang in front of my office on the main street in the city.
The sign was about 2 feet by 3 feet, painted white with beautiful black lettering with grey shadowing on both sides. There was only one problem, on both sides of the sign in big bold black letters over three inches high.....
The woman who painted the sign left the “L” out of Public. Yes, my sign said , “Certified Pubic Accountant.” I took some pictures before I had it repainted.
Kind of off topic but another funny IRS story...
I read an article some years ago about a woman who was unhappy about her tax bill so she wrote the IRS a check on her panties. (didn’t say if they were used or not).
The IRS refused to cash it and she took them to court and won, they had to accept it. It seems if you write a check it does not have to be on a printed check, or even on paper, it just has to have your account number and other pertinent information and be signed.
That is correct. I remember a case where two men, fairly old and well off, were in the woods discussing the sale of the property they were on. They agreed on a price, but could not find a piece of paper. They found an old wood board and wrote the ‘check’ upon it.
The seller took the board to the bank, but the bank initially refused to cash the ‘check’. But eventually they had to, because it was a legal instrument, properly signed, dated and accounted...............
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