Wednesday, April 3, 2019

Craziest Deductions You've Ever Heard Of


If you’re a taxpaying adult, then you probably know all about deductions, which can help you to save money on your taxes. Maybe you’ve even qualified for a deduction or two yourself.

However, not every deduction that people try to pass off is “by the book.” Believe it or not, there are some pretty crazy deductions that people have tried to fight for…sometimes successfully. While they may sound nuts, these are some real-life deductions people have tried to get.   


The Cat Food Deduction

A local junkyard was having problems with infestation. It had lots of snakes slithering around, as well as rats, which the snakes were feeding on.

The junkyard made the decision to attract wild cats by putting out cat food every night. Their plan worked, and the cats started to kill the rats, which also got rid of the snakes.

The junkyard tried to deduct the cat food costs as a business expense. And, believe it or not, the IRS was just fine with it!

The Charitable Babysitting Deduction

There was once a mom who wanted to do her part and “give back” by volunteering for a charity. The only problem was that she needed a babysitter for the hours she wanted to volunteer. Her solution was to hire a sitter and then deduct what she paid her as a charitable contribution.

While this was a bit of a “workaround”- some might even call it a stretch- the IRS actually went for it!

These stories might surprise you, but trust us. They aren’t the craziest of the craziest!

Before you give any of your own “crazy ideas” a try with the IRS, send them through your financial adviser. This will keep you out of trouble and might just increase the chances that your deduction idea gets the seal of approval from the IRS.


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