Pesky Items That We Can't Use As Tax Deductions
As tax season fast approaches, people scramble to collect the necessary paperwork in order to file their taxes correctly and avoid unnecessary fines. While a frustrating task, to say the least, there is one silver lining — you can receive major tax deductions by writing off a whole range of expenses! Although the list of potential write-offs is expansive, there are still several expenses that accountants agree cannot be considered, no matter how you view them. Here are the most outrageous attempted tax deductions that accountants have ever encountered.
While teamwork is an important driver of success, not all forms of team-building are considered legitimate business expenses, let alone appropriate for the workplace. One accounting expert recalled a client who attempted to deduct the cost of hiring a stripper as a business expense. Needless to say, the IRS straight-up denied him. Another remembered clients attempting to write off escort services and "friends" they found on AdultFriendFinder.
While donations are often tax-deductible, not all forms of charity can be. One chartered accountant recalled how one of her clients provided a spreadsheet of all the hours he worked as a volunteer at a charity. While he may have believed that he deserved a tax deduction for the hours of lost income he incurred due to his charitable deeds, the IRS wouldn't have agreed.
Your daughter's wedding
While there are plenty of different kinds of business networking events, your daughter's wedding isn't one of them. For some reason, one business owner was convinced that the cost of his daughter's wedding was tax-deductible since many of the people in the room could be potential clients. Hence the "networking" aspect of the affair. Although some events might seem tax-deductible, extravagant weddings are a no-go to the IRS.
Publicity is a crucial aspect of any business. Still, the activities that can genuinely be considered as part of a company's PR efforts are sometimes debatable. Some accountants' clients have unsuccessfully attempted to write off high-end purchases such as diamonds and designer clothes to "maintain their personal image". Another client thought she would go the healthcare route, labeling her breast implants as a medical expense. Much like her counterparts, she was faced with a resounding "no."