1. Hire your significant other. If your significant other is hanging around your business, then you should consider putting them to work. In Bruce v. Commissioner, Bruce hired his live-in girlfriend to manage his rental properties. One of her responsibilities included running Bruce’s household. Though the Tax Court said her chores around the house counted as nondeductible personal services, he was able to deduct one quarter of her wages as a business expense.
2. Feeding Fido. Are you feeding a pet? It might be considered a charitable donation. Or, is a pet on your property helping your customers? If so, you may be eligible for tax deductions on pet food and vet bills, among other animal expenses. Past cases such as Seawright v. Commissioner have proven that some pets may increase your chances of receiving tax deductions.
3. Caring for feral cats. In 2011, Tax Court ruled that a California woman who was taking care of some 70 feral cats in her house was allowed to claim some of her expenses as qualifying tax deductions. If you decide to deduct caring for stray animals, keep your receipts and ask a local shelter for a letter describing how your spending advances their work.
4. Oil up those biceps. In the past, a pro bodybuilder was able to deduct the cost of oil used in competitions as a business expense. Though the Tax Court ruled against the use of supplements and food for special muscle-building diets.
5. It may be time to get a private plane. In past cases, such as French v. Commissioner, the Tax Court allowed the French family to deduct business travel on their personal plane, this included fuel cost and depreciation.
6. Free beer and burgers. If you have ever gifted your customers with free beer or food in an attempt to improve your profit margins, then you may be able to use this business expense as a tax write-off. The Tax Court has ruled in favor of such expenses in the past.
7. Baby sitter. Parents may receive tax deductions for baby-sitting fees. The IRS has considered such fees charitable contributions in the past.
8. Build a swimming pool. When a taxpayer with emphysema built a pool in his backyard, he was just doing what the doctor ordered. He swam in it twice a day to better his lung capacity. Because he swam in the pool more than the other members of his family, the Tax Court allowed him to deduct the cost of the pool, the cost of heating the pool, and the cost of treating the pool with chemicals as a medical expense.
9. Make your money back on breast implants. If you are an exotic dancer you may be able to claim a depreciation deduction for new “stage props.” A judge ruled in favor of Cynthia Hess, or better known as “Chesty Love,” to uphold a deduction for surgical implants.
10. African Safari. Owners of a dairy business were able to claim their African Safari as business expense because it was a necessary research for their business. The IRS let it slide.
These tax deductions may not apply to you, however we know many more ways to get you the deductions that you are entitled to. If you need help to reduce your tax liability and you owe over $10,000 to the IRS or State, be sure to call Advance Tax Relief LLC. Our Licensed Agents can start resolving your tax burdens today.
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