Finerpoints Accounting

2016’s Craziest Tax Deductions

The Minnesota Society of CPA’s recently released its annual list of its craziest tax deductions. This list is a survey of its members and the strange and craziest tax deductions that they tried to claim. The below list just goes to show that what is and isn’t a deduction isn’t always clear.

The List of Craziest Tax Deductions

FInerpoints Accounting, Out Rageous Tax Deductions

Expensive Clothing

While clothing purchases can be used as a deduction, this is primarily meant for purchases reserved for clothing that is essential for your job. You are expected to show up to work well dressed and looking professional, that does not mean your $800 suit or $200 shoes count as essential work clothes. These deductions are reserved for work clothes such as safety gear and scrubs. If your clothing purchase is suitable to wear outside of work, its not deductible.

Finerpoints Accounting, Craziest Tax Deductions 2016

Extravagant Purchases

A humanities professor at a local college thought he could deduct a recent purchase of a baby grand piano. The professor unfortunately had to be informed that unless he was giving piano lessons on the side, this purchase could not be deducted.

Finerpoints Accounting, Craziest Tax Deductions

Gambling Losses…As A Charitable Donation

While it is possible to claim your gambling losses as a deduction, claiming them as a charitable donation is not accepted as one client attempted to do. You can only claim your gambling losses if you claim your winnings as income as well, and that’s only if you itemize.

Finerpoints Accounting, Craziest Tax Deductions

Personal Hygiene Products

We all expect you to come to work not smelling fresh. However, you cannot deduct personal hygiene products like toothpaste and foot powder as one client attempted to. Stinky feet are a problem, but not one the IRS will pay for.

Finerpoints Accounting, Craziest Tax Deductions

Questionable Daycare Expenses

Daycare for your child is deductible on your taxes, however, just being a good parent and taking your kid to do fun activities is not. One client tried to deduct a season pass to an amusement park as a daycare expense, which is not allowed. Daycares can take a trip to the amusement park off of their business taxes, however, your personal trip to Disney World is a cost you have to shoulder.

Click Here to see other crazy tax deductions.