The Weirdest Tax Deductions
Most small business owners don’t take all the deductions they’re allowed. If you’re doing your own taxes, there’s no way you can think of every little deduction. Those little deductions, however, can add up to big savings.
When you receive a letter from the Internal Revenue Service telling you that they’re going to audit your business or personal tax returns, it can send a shiver of dread down your spine. The purpose of an audit is to examine your returns for errors or omissions. The IRS can be relentless when pursuing taxes owed, which is why so many people fear the process.
Miller & Company, a leading tax accounting firm, offers many services to prevent an IRS audit and assist you in the event of one. Miller & Company LLP, NY Certified Public Accountants, a best rated NYC CPA firm.
In some cases, an IRS audit determines whether you’ve purposefully or inadvertently committed any tax fraud. Most cases find nothing erroneous, but because of their methodical processes, the IRS will find any problems and mistakes you made when filing your return. Rely on an experienced NYC tax accounting firm like Miller & Company LLP.
Legal & Recognized by IRS Tax Deductions
There are some business owners who are either creatively insightful or use a savvy tax accountant. Either way, you can benefit from the out-of-the-box thinking that went into the following examples of the best tax write-offs recognized by the Internal Revenue Service:
1. The Best Tax Deductions for Small Business Owners.
Lawn maintenance. Landscape design. House painting. Some or all of these expenses can become your best tax deductions if you run a small business out of your home. You have to show that these costs are necessary to or improve your business, such as when your clients meet you at your home.
2. Exotic Trips That Aren’t “Vacations.”
You may think that the costs of a trip to a far-off land wouldn’t make the best tax deductions, but one businessman successfully wrote off a trip to Africa because the research he did there mattered to his business. Where will your business take you?
3. Exotic Trips to U.S. Locations.
Ever wonder why conventions are held in places like Las Vegas, Palm Springs or Puerto Rico? It’s because all expenses to a business conference within the United States, including its possessions, are the best tax write-offs. Just don’t tell the government you had any fun.
4. Beer, Party Supplies and Other Sundries.
If you hold a party to promote your business, those expenses become legitimate business tax deductions. Remember you have to give it away, not sell it. Anything you do to attract customers may be tax deductible, but make sure it’s legal in your state. When in doubt, consult a knowledgeable tax accountant like Miller & Company while you’re planning your event.
5. Sporting Goods.
The perks of being in advertising. If you’re working for a client who makes sporting goods, you can buy their products and claim the purchases were for research. Tents? Check. Mountain-climbing gear? Check. If what you buy can help you do your job — whether it’s writing advertising, creating a catalog or designing a website — it may be one of the best tax deductions you’ll ever enjoy.
6. Cat Food as Business Expense.
One enterprising entrepreneur claimed cat food costs as the best tax deductions for small business owners, and he got away with it. He used the cat food to attract cats, which in turn chased away the rodent problem from his business property. An inventive solution… and tax deductible.
7. Relocation Expenses for Your Pet.
One of the best tax write-offs involves the costs of moving for a new job. You can deduct all legitimate travel expenses, from hiring the movers to buying cardboard boxes. While none of this is remotely weird, consider that you also get tax deductions for the cost of moving your pets. Doggie tranquilizers? Deductible. Special cat crate? Deductible. You can write off every expense associated with moving your four-legged family members.
8. Chihuahuas Need Not Apply.
Speaking of pets, if you have one that performs a business duty, such as guarding your premises, you can write off part of your pet care budget. If you can show your pet’s value to your business, you can deduct some of your costs.
9. Music Lessons for Your Child.
Back in 1962, orthodontists successfully argued that clarinet lessons help mitigate a child’s overbite. By this reasoning, learning to play a cool instrument becomes one of the best tax deductions. If your child has a bit of an overbite, encourage clarinet lessons. They may count toward your medical expenses.
10. No More Swimming Pool Blues.
If you’ve been diagnosed with a medical condition for which swimming is considered a treatment, you can deduct the cost of your backyard swimming pool. It’s another medical expense that your doctor has ordered to keep or get you healthy. Of course, any money you save may go right into the pool’s maintenance costs.
11. Quitting Can Pay.
Smoking cigarettes is one of the worst things you can do to your health. Quitting smoking helps you on so many levels — including financially, as the expenses to quit can be tax deductible if prescribed by your doctor. Need nicotine patches or other cessation aids? They’re the best tax write-offs because they don’t just lower your tax burden; they lengthen your lifespan.
12. Obesity Cure as a Tax Deduction.
No one wants to be in this situation, but if you’re so out of shape that your doctor has given you an ultimatum, anything you do to lose weight may be your best tax deductions of the decade. Gym membership? You can write it off. Joining a weight loss program? Deduct the fees. Lose weight and gain health while the government pays you back.
13. The Gift That Gives Back.
If you do charity work, first: thank you. Second, you can deduct any child care expenses, including hiring a neighborhood babysitter, for every hour you spend at your non-paying job. So if you give your time to your community, the government in turn gives back to you.
14. Assorted Weird Items.
The following odd assortment of things can be tax deductible in the right circumstances. Some serve as tax deductions no matter what! For example:
- Pregnancy tests, anytime
- Breast pumps, always
- Wigs, if prescribed by your doctor
- Addiction treatment, for inpatient care
- Gifts to business associates, up to $25
- Organ donation, medical and transportation costs
- Fertility treatments, if a medical condition
- All pet expenses, for guide dogs
Do you have questions about Best Tax deductions in NYC and Long Island? Would you like to receive a personal tax deductions or best tax write 0ffs consultation customized to your specific needs? To schedule an appointment with a nationally recognized leading CPA in Queens and Manhattan, Paul Miller of Miller & Company LLP, please contact our NYC accounting firm for a consultation.