Sometimes a tax deduction is just plain weird. Here is a roundup of weird and legal tax deductions. Will you be deducting any of these on your next return?
Key Takeaways
- Some tax deductions are weird and unusual but legal.
- They are legitimate deductions that fall under medical expenses, business expenses, and moving expenses.
- So think outside the box when considering your tax deductions. You may find you have a weird tax deduction of your own.
Breast Implants
Breast implants can be deducted if they are a business expense, but it depends on what your business is and you could have to argue the fact in court.
“An exotic dancer deducted the cost of breast implants as a necessary business expense. The court agreed they were essential to her income and allowed it as part of her job-related costs,” says Trent Porter, a certified financial planner and CEO of Priority Financial Partners.
Cat Food and Guard Dogs
©️ Elke Vogelsang / Comedy Pet Photo Awards 2020
We love our pets, but could they be seen as an employee? So it’s important for cat owners who are also business owners to realize that cat food too can be a tax deduction if it is part of a business expense.
“There’s also the case of a junkyard owner who deducted cat food used to attract stray cats that kept the property rodent-free. (It was) considered an ordinary and necessary business expense,” Porter says.
If your dog protects a business property, you can get a tax deduction for their food and veterinarian costs as well.
“This is when a business owner can deduct their dog expenses like food and vet visits if their dogs are properly trained to guard and protect the business property and inventory,” says Raman Singh, a certified financial planner at Singh PWM. “The caveat is that the dog breeds have to be the ‘protective type.’”
Clarinet Lessons
Clarinet lessons were considered part of a medical expense thanks to an orthodontist’s recommendation. And as a medical expense, they could be a tax deduction.
“A parent deducted clarinet lessons for their child after an orthodontist suggested it could help correct an overbite, which was accepted as a medical expense,” Porter says.
Yoga
You may be able to deduct the cost of yoga classes if a doctor prescribes the class to treat a specific condition.
“In certain cases, yoga classes can be deducted as a medical expense, if a doctor prescribed it as part of a treatment for a condition like anxiety or back pain,” says Filip Telibasa, a certifed financial planner and owner of Benzina Wealth.
Pets
If you’re not a pet owner who is also a business person, you may still be able to take a deduction for loving your furry friend, if you can prove your dog or cat is more than a pet. They are tax deductions when you move.
“When moving for a new job more than 50 miles away, you may be able to deduct the cost of transporting your pet since they are legally considered a ‘household good,’” Telibasa says.
Augusta Rule
Steve Munday/Getty Images
This tax loophole was created specifically for people fleeing from golf fans coming to their town.
“The Augusta Rule is a great example of a weird tax rule,” says Michael Dunham, director of planning at Fontana Financial Planning. “It was inspired by The Masters golf tournament and designed to allow the residents of Augusta, Georgia, to flee the town every year and rent out their homes to tournament patrons. The rule allows anyone to rent out a property for up to 14 days in a year and pay no income taxes on the proceeds.”
Condoms
People who practice safe sex can deduct the cost of condoms, but it may or may not be something you feel comfortable talking to your accountant about.
“The IRS provided us guidance late last year that male condoms can be deducted as a medical expense. Frankly, I have never asked a client that question when working on their tax returns,” says Lawrence Pon, a certified public accountant at Pon & Associates.
Pon went on to note that the same guidance indicates that male condoms can be reimbursed through flexible spending accounts and Health Savings Accounts.
The Bottom Line
As this roundup shows, some tax deductions are unusual and weird but legal. They are considered legitimate tax deductions for business expenses, moving expenses, and medical expenses.
So take a close look at your business expenses. Is there a weird expense you may be missing? What about medical expenses? Did your doctor give you an unusual prescription? It could be a weird deduction for your taxes.