Kylie Whitcomb Reduce Your Tax Burden
No one wants to pay more than what they owe in taxes, but some people get awfully creative about reducing your tax burden. Discover a few of the most interesting write-offs below.
Over the years, the IRS has approved some truly unusual tax deductions. In each of the cases described below, the taxpayer could prove the items were legitimate business expenses or fit the bill as tax deductible. Could you do the same? If so, read on to find some tips for how to reduce your tax burden.
1. Baby Oil
Baby oil isn’t usually a tax-deductible expense since it’s a personal product, but it was considered a business expense in at least one case. A professional bodybuilder in 1984 used body oil to make his muscles glisten during competitions and could deduct it successfully.
2. Breast Implants
As a cosmetic surgery, getting breast implants is generally a personal expense, which makes it ineligible for tax deductions. However, that’s not always the case. For at least one exotic dancer, Cynthia Hess, the breast implants were considered a necessary expense because their large stature made them analogous to a costume used for her job.
3. Caribbean Trips
It’s surprisingly common for white-collar professionals to write off trips to the Caribbean as business expenses. As long as the trip was for a convention, places like the Caribbean islands get a free pass on showing a special reason for the meeting to be held in that specific place. Unfortunately, the same doesn’t apply elsewhere in the world.
4. Pets
Pets, including emotional support animals, aren’t generally eligible for tax deductions. However, some pet-related expenses have been written off successfully. In 1995, Samuel Seawright deducted $300 for cat food set out to attract wild felines that prevented snakes from entering his scrapyard, to give one example.
5. Swimming Pools
While swimming pools aren’t deductible expenses for most people, they may be if you have a specific medical condition that causes your doctor to prescribe hydrotherapy. The key is that taxpayers need to have a way to prove that the swimming pool is a medical expense.
6. Private Jets
A couple could write off their private jet on their taxes in at least one case. The California couple argued that they used the jet to fly from San Jose to Mammoth Lakes, CA, to manage and rent their condo. Since the condo was up for rent, the courts decided that the couple could claim it needed to fly there and back to manage it.
The Key to Successful Tax Deductions
Remember that the tax deductions described above became famous because they had to be fought in court. Most people aren’t willing to go through that kind of hassle for a few hundred dollars, but for the price of a private jet, it could be worth the hassle.
The key to all these people’s success is that they could prove the deducted items were necessary as either business or medical expenses. That requires more than just keeping receipts.
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