Most Outrageous Tax Deductions of 2015
January 27, 2015 1:28 PM
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Questionable Dependents
Attempting to claim "Fido" as a dependent is popular amongst clients with pets. One CPA reported a woman tried to claim her unborn child as a dependent.
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A Daughter's Wedding
Sure, weddings are entertaining. But deducting the full cost as an entertainment expense does not make for a good relationship with the IRS.
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The Cost of Speeding Tickets
Even if it's because you were late for a business meeting, speeding tickets are fines and therefore, not deductible on your tax return.
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Misinterpretations of Charitable Donation
Charity can take on many forms. But for one CPA's client, a vehicle that was impounded by the police was not deemed a qualifying deduction.
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Hobbies
The IRS does not allow deductions for hobby expenses. One client learned that when he attempted to take deductions on his horse ranch.
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Keeping Up Appearances
While some professions may require a certain appearance, the cost of haircuts, plastic surgery, massages and salon expenses are generally not deductible.
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Creative Investments
The loss on the sale of a personal house, while unfortunate, does not qualify as an investment by the IRS.
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Expansive Home Office Expenses
Deductions on a home office are limited to the portion of the home dedicated to the business. Clients have attempted to do more though, from the cost of groceries to the mortgage.
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Boats
Want smooth sailing on your tax return? Then you should not deduct your boat as a "water computer," as one CPA had to inform their client.
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Hunting Trips Because You "Talk Business"
That weekend of hunting with friends is generally not deductible, no matter how often you talk about your boss.
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