Ever wonder if your crazy tax deduction idea would pass the IRS’s muster? Here’s a list of 14 “oddball” deduction that did just that.
And here’s three samples from the link:
4. Cat food. A couple who owned a junkyard were allowed to write off the cost of cat food they set out to attract wild cats. The feral felines did more than just eat. They also took care of snakes and rats on the property, making the place safer for customers. When the case reached the Tax Court, IRS lawyers conceded that the cost was deductible.
7. Breast augmentation. In an effort to get bigger tips, an exotic dancer with the stage name “Chesty Love” decided to get implants to make her a size 56-FF. The IRS challenged her deduction, saying the operation was cosmetic surgery. But a female Tax Court judge allowed this taxpayer to claim a depreciation deduction for her new, um, assets, equating them to a stage prop. Alas, the operation later proved to be a problem for Ms. Love. She tripped, rupturing one of her implants. That caused a severe infection, and the implants had to be removed.
10. Free beer. In a novel promotion, a service-station owner gave his customers free beer in lieu of trading stamps. Proving that alcohol and gasoline do mix — for tax purposes — the Tax Court allowed the write-off as a business expense.