Extraordinary Tax Deductions

Sometimes, despite objections from the IRS, taxpayers get to write off the oddest things. Kiplinger.com has listed some real humdingers:



1. A “significant other.” A man hired his live-in girlfriend to manage several of his rental properties. Her duties included finding furniture, overseeing repairs and running his personal household. The Tax Court let him deduct as a business expense $2,500 of the $9,000 he paid her, but disallowed the cost of her housekeeping chores as nondeductible personal services.



2. A private plane. Rather than drive five to seven hours to check on their rental condo or be tied to the only daily commercial flights available, a couple bought their own plane. The Tax Court allowed them to deduct their condo-related trips on the aircraft, including the cost of fuel and depreciation for the portion of time used for business-related purposes, even though these costs increased their overall rental loss on the condo.



3. Cat food. A couple who owned a junkyard wrote off the cost of cat food they set out to attract wild cats. The feral felines took care of snakes and rats on the property, making the place safer for customers. The Tax Court conceded that the cost was deductible.



4. Body oil. A professional bodybuilder used body oil to make his muscles glisten in the lights during his competitions. The Tax Court ruled that he could deduct the cost of the oil as a business expense.



5. Wrecking a car while driving drunk. A man drank too much at a party and had the good sense to arrange a ride home. A few hours later, he thought he was okay to drive. But the vehicle he was driving slid off the road and rolled over. The cops arrested him for DUI because his blood-alcohol level was just over the legal limit. His insurer refused to pay for the damage to his car because of the arrest. The Tax Court let him deduct the cost of the damage as casualty loss because he tried to act reasonably. Had he driven straight home from the party, the court said his deduction would have been nixed because his actions would have constituted gross negligence.



6. Free beer. In a novel promotion, a service-station owner gave his customers free beer in lieu of trading stamps. The Tax Court allowed the write-off as a business expense.



7. Baby-sitting fees. Fees paid to a sitter to enable a parent to get out of the house and do volunteer work for a charity are deductible as charitable contributions, even though the money didn’t go directly to the charity, according to the Tax Court.



8. Landscaping. A sole proprietor who regularly met clients in his home office was allowed to deduct part of the costs of landscaping the property, on the grounds that it was a part of the home being used for business, according to the Tax Court. The court also allowed a deduction for part of the costs of lawn care and driveway repairs.



9. Swimming pool. A taxpayer with emphysema put in a pool after his doctor told him to develop an exercise regime. He swam in it twice a day and improved his breathing capacity. The Tax Court allowed him to deduct the cost of the pool as a medical expense because its primary purpose was for medical care. The cost of heating the pool, pool chemicals and a proportionate part of insuring the pool area were also treated as medical expenses.