Yes, Virginia, there is a Santa Claus.
It's the season of magic, and miracles are still possible. In order to get you in a good mood for the holidays, here are a few things you might not have to pay taxes on, for a change.
Some of them will definitely surprise you.
Payments made to a significant other. The landmark case of Bruce v. Commissioner ruled that a portion of the payments this gentleman gave his girlfriend for managing his house and rental properties were, indeed, tax-deductible. If the IRS gives you any grief, you can use this case as precedent.
Clarinet Lessons. If your child has dental problems, you may want to consider getting him or her a clarinet and paying for lessons. You may be able to deduct the cost of the instrument and the lessons because a 1962 provision that says clarinet playing is supposed to help with an overbite.
Private Plane Expenses. Yes, it is possible to buy a private plan and write your trips in it off as business expenses, as the case of French v. Commissioner proved.
Swimming Pool. A doctor for a man with severe emphysema prescribed him to begin exercising to regain his breathing capacity. He then had a pool installed. In Cherry v. Commissioner the Cherry family was able to deduct the cost of the pool as a medical expense. This also included the cost of heating the pool, pool chemicals, and insurance!
Babysitting Fees. Guess what? The Tax Court ruled that fees paid to a babysitter so the parents can go out and do volunteer work may be written off as "charitable contributions," even though the money isn't being paid directly to the charity. How about that?
Cat Food. Depending on how hard you fight the tax court, you may be able to get your cat food written off as either a charitable contribution or a business expense. (We don't recomment banking on it, though).
Hopefully this useful information makes your holiday a little bit more merry.
Have you come across any other strange tax-deductible expenses? We'd love to hear about them (or to help you figure out what you might be able to write off this year).
Just give us a call at 844-841-9857, or schedule a free consultation here.
