TruPoint Accounting & Tax Today

When it comes to tax season, taxpayers will always try to find ways to get the most money from their refund. Like the time you tried to claim your dog Toby as a dependent. After all, he does “depend” on you as his pet owner, and those dog treats don’t buy themselves. But for some, getting the most may require doing the most extreme deduction possible. Here’s a list of the ten most outrageous deductions of 2015, so far.

1. Ghost Dependents

As it is common for most tax payers to try to claim their pets as dependents, it’s certainly extreme to try and claim an unborn child. The Texas mother who attempted this was not “expecting” the call she received from IRS.

2. A Joyous Occasion

So you got married this year, congratulations! Unfortunately,  party-ing it up on the night of your wedding with 250 “business partners”  is not actually deductible as entertainment expense.

3. Horseplay & Hobbies

Sorry, but IRS does not deduct hobby expenses. One client learned that fast when he tried to take deductions his horse ranch.

4. Keepin It Up!

Your job may require you to keep up with your appearance when meeting with clients, but a new haircut, surgical procedures, and your stylist expenses are generally not deductible. But you look good though.

5. Having A Home Office

IRS allows deductions only on the portion of the home that is dedicated to the business. Some at home business owners have gone to the extreme trying to claim groceries and even the mortgage.

6. Getaway Trips

Taking your vacation days shouldn’t be a problem. Taking deductions on the vacation you and your co-workers took in Jamaica is a big one for the IRS.

7. Traffic Fines

Running a traffic light on the way to your business meeting can happen, but speeding tickets are fines and therefore, not deductible on your tax return.

8. Misleading Charitable Donations

Indeed, charity can come in many forms. But for one CPA’s client, he learned that vehicles impounded by the police are not deemed as qualifying deductions.

9. Boats

Avoid rough seas with the IRS by not deducting your boat as a “water computer” as one CPA had to enlighten their client.

10. Bad Investments

A loss on a sale of home is unfortunate, and also doesn’t qualify as investment by the IRS therefore, it is not a qualifying deduction.

Have questions on what’s deductible and what’s not? Don’t fall in the same extreme category as these folks. Contact us for more advice.