Accounting News

Thursday, February 23, 2012
Some Interesting Tax Deductions

The Minnesota Society of Certified Public Accountants has released their annual survey of bad deductions. The  organization asked each member Minnesota CPA what were some of the most interesting deductions that their clients wanted to claim. I can understand the frustration of the client but it is a good thing that a CPA intervened and prevented a frustration from becoming an audit.

Not everything that improves your health is a medical expense. This includes exercise equipment, pools, or even better a house in Arizona. The same goes for breast implants and tummy tucks.

Even if you invite a business associate it is not always a business expense. Consider the may who tried to deduct the entire cost of a wedding or three country club memberships.

Not all charity is deductible.  If you give blood there is not tax benefit, but you will save a life. And giving money to your deadbeat brother in law isn't any better. But the one I would like to know more about is how burning down a barn is charity. Perhaps it warmed up some squirrels.

And the best of all is the man who wanted to claim a politician as a dependent. His logic was that he "pays his salary." Hard to argue but even if true by the time you calculated just your share it wouldn't we worth the effort to write it down.