Unusual (but legit) Income Tax Deductions

As the 2012 income tax filing season draws to a close, America’s Tax & Accounting Service did some research on some of the more unusual (but legitimate) income tax deductions that have been qualified by the IRS.  Since the tax season may have been an unpleasant one for some taxpayers, this posts attempt at humor will hopefully bring a smile to the reader’s face…..

Deductible??

1) Is pet food deductible?  The normal answer from most tax experts would be a resounding “No”, but in certain cases pet food is an allowed deduction.  If you are a business owner and use a pet to protect your business – the expense of feeding the pet can be allowed.  A specific example allowed by the IRS involved a junkyard owner who bought cat food to feed his cat, who in turn, protected his business against some nuisance rodents.  In this case, the pet performed a relatively important task in the maintenance and upkeep of the business.

2)  Is a swimming pool deductible?  Your swimming pool might qualify as a medical deductible expense if it improves a medical condition.  In one case, an arthritis patient was allowed to deduct the cost of his swimming pool, since he was prescribed to exercise in a swimming pool by his primary physician to treat his arthritic condition.

3)  Is Beer deductible?  There is precedent set by the IRS in a case in which a business owner was allowed to deduct the cost of beer, as it was used to attract customers and promote his business.

Deductible??

4)  Can music lessons be deductible?  The short answer is no, but there is a case in IRS history, where clarinet lessons were allowed to be deducted as the lessons were intended to cure a child’s overbite.

5)  Body Oil – A tax court has ruled that bodybuilders can deduct the cost of body oil as a business expense as it is used to make muscles glisten under hot stage lights.  Vitamin supplements, however, were not allowed to be deducted.

While these are humorous examples of some of the stranger income tax deductions that have been allowed, there are hundreds of less outrageous deductions that can be taken, yet many people that prepare their own taxes (or even many paid tax preparers) are not aware of them.  If you have questions on what is an allowable deduction, please feel free to contact America’s Tax & Accounting Service and we will be happy to help.

America’s Tax & Accounting Service has been providing the Tampa Bay area with income tax and bookkeeping services for over 15 years.