Should you take a risk on tax deductions? My answer would be no. The turbo tax software site says the same thing. I am not one to take such risks. However, others have dared to boldly go where no tax payer has gone before.
One group of accountants in Minnesota decided to take a survey to compile a list of unique and strange tax deductions. It is a good thing their accountant talked them out of claiming such things or else they would get an angry letter from the IRS.
It is amazing what some people try to list as deductions. One handyman in Minnesota though they could take a $25000 deduction for the miles he traveled back and forth to work. Their business revenue is $10000. An accountant in the Minnesota CPA group who gave the surveys had a client with a huge amount of expenses on a luxury vehicle. They thought the tax deduction was legal though they resided in another state. One client wanted to list a city official as a dependent because they paid the salary.
Some people think you can claim a spouse. According to the turbo tax website, you can get a deduction for a dependent spouse if you file jointly. You cannot claim former spouses as one person tried to do. It is also a good idea not to inflate charitable donations. Odd deductions can get you audited by the IRS. The ironic thing is you can claim some strange deductions according to turbo tax.
- Unusual Tax Deductions You Should Not Claim (2012taxes.org)
- Learn More About The Tax Breaks That Will Expire At The End Of This Year (2012tax.org)
Unusual Tax Deductions Can Be Risky