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Every year American taxpayers attempt to lower their federal tax liability by including any credits or deductions they can think of. Below is a list of the 25 most ridiculous tax write-offs of all time most of which were allowed by the Internal Revenue Service.
Some of these deductions may be silly, but filing a correct income tax return is very serious. If the IRS disputes a claim you may end up facing an audit and thousands of dollars in penalties and fees. We recommend you speak with a tax professional before including any of these or similar deductions on your own income tax return.
1. Beer Give Away C
A local gas station owner decided to give away free beer to his customers and was able to write this off as a legitimate business expense.
2. Fallout Shelter D
Fearing a nuclear apocalypse, a gentleman built a fallout shelter and decided to deduct the expenses as "preventative medicine." Unfortunately the IRS does not consider fallout shelters medicinal.
3. Swimming Pool C
After being diagnosed with emphysema, an elderly man was able to claim the cost of building a swimming pool. His stance was that the pool allowed him to exercise and that his doctor instructed him to get more physical activity.
4. Mink Coat D
A businesswoman attempted to write off the cost of a $5,000+ mink coat claiming she needed it when visiting clients. However, the IRS did not consider this ordinary or necessary for her job and denied the deduction.
5. Exotic Dancers C
The owner of a nightclub hired exotic dancers for a promotional party and was allowed to deduct the cost paid to the dancers as a valid expense.
6. Dancing Lessons D
Even though the IRS allowed someone to build a pool for medicinal exercise, they refused to let a woman deduct the costs of getting dancing lessons. She claimed it as a medical expense. However, she was not instructed by her doctor to exercise.
7. Private Airplane C
A couple who owned a successful business was allowed to deduct all costs relating to any business use of a private jet. This included trips back and forth from their secluded condo.
8. Whiskey D
A man attempted to write off whiskey that he had given away to clients as gifts. Unfortunately, he tried to claim it as client entertainment expenses and was not allowed to deduct the costs.
9. Babysitting D
It was rumored that woman volunteering for a large charitable cause was able to deduct the costs she paid to a babysitter while she was volunteering. However, according to the IRS ?you cannot deduct payments for child care expenses as a charitable contribution, even if they are necessary so you can do volunteer work for a qualified organization?
10. Arsonist Expenses D
A gentleman who owned a furniture store hired an arsonist to burn down his store in order to collect the insurance money. He tried to deduct the $10,000 arson fee, but was denied by the IRS.
11. Body Oil C
Professional body builders are allowed to deduct the costs of anything "ordinary and necessary" for their profession, including body oil expenses.
12. Racehorse D
A businessman purchased a racehorse and attempted to claim it as a client entertainment expense. However, the IRS did not allow this deduction even though the man took clients to see the horse race in competitions.
13. Television & Cable D
A Spanish teacher unsuccessfully attempted to write of the cost of his television and cable claiming that he only purchased it for the Spanish channels.
14. Ostrich Depreciation C
The IRS allows you to depreciate the costs of any livestock as long as it is used for breeding. This was great news for a local ostrich farmer who was able to include the depreciation of his ostriches on his tax return.
15. Breast Implants C
An infamous stripper by the name of "Chesty Love" was allowed to deduct the cost of her breast implants claiming they were an essential props in her performance.
16. Sperm Donation D
After making a donation at a sperm bank, a Manhattan resident attempted to claim a depletion loss on the donated sperm. This did not fly with the IRS and his deduction was not allowed.
17. Prostitution D
The federal government does not allow expense deductions for illegal professions. This was unfortunate for a Las Vegas prostitute who unsuccessfully attempted to deduct the cost of birth control.
18. Home Landscaping C
A business owner who frequently met with clients at his principal place of residence was allowed to deduct a portion of the fees he paid to have his yard professionally landscaped.
19. African Safari C
A dairy farmer was allowed to deduct the cost of trip to Africa as a business expense because his trip focused on learning about wild animals. The IRS considered this tip ordinary and necessary.
20. Cat Food C
The IRS allowed a group of junkyard owners to deduct the cost of cat food. They claimed the food attracted cats that took care of rats and snakes.
21. Pet Moving Costs C
The IRS considers family pets personal effects. Therefore, if you move for a job you can deduct the cost of moving your pets with you. This was the case for a family who incurred high costs to move their Great Dane.
22. Trip to Bermuda C
The IRS always allows you to deduct expenses for business conventions or conferences. Even if they are in Bermuda, Barbados, Tahiti, etc.
23. Marijuana Soil D
A California man attempted to deduct the cost of soil and gardening tools for his career as a marijuana grower. However, the IRS does not allow expenses for illegal professions.
24. Dog Deductions D
People often try to find ways to get deductions for their dogs. Some times people claim them as dependents and one man even tried to count his dog as a security cost. Unfortunately, the IRS has consistently rejected these claims.
25. Designer Clothing D
A male model hoped he could write-off the costs of his entire collection of designer clothing claiming that he needed to always "look good." Unfortunately, the IRS only allows for clothing related deductions if they are strictly for a business purpose. So shirts with a company?s logos would be allowed, but designer suits would not be.
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