Tax laws can be surprisingly full of strange nuances once you get into the details. While most people are familiar with common deductions for mortgages or charitable donations, some rarely claimed (though legal) deductions sound ridiculous. These unusual write-offs exist because tax codes try to account for extremely specific professions and situations. Although these deductions seem funny or extreme, they have surprisingly logical explanations behind them. Let’s take a look at 10 bizarre tax deductions.
1. Guard Dogs for Businesses
Business owners may sometimes deduct the cost of guard dogs used to protect commercial property. The deduction can include anything related to the pup’s care, including food, veterinary bills, and training expenses. Of course, the dog needs to serve a legitimate security purpose rather than simply being a family pet. A tiny Chihuahua running security on a warehouse would probably flag an audit.
2. Cat Food for Junkyards
Some junkyard owners have reportedly deducted cat food as a business expense. But how could feeding strays be anything other than a personal choice (and a kindness to the animals)? The reasoning is that cats help control rodents on the property. Since rodents are more than just a nuisance and can damage inventory and lead to sanitation issues, the expense may qualify as business-related. It is one of the stranger examples of animal-based tax write-offs.
3. Body Oil
Professional bodybuilders and performers have sometimes deducted oils used during competitions or performances. In these cases, the products are considered necessary for the job, not just for personal day-to-day skincare. Claiming this deduction means proving the expense is directly tied to professional income. Ordinary gym-goers should know: If you aren’t earning money through bodybuilding, body oil has no place on your taxes.
4. Clarinet Lessons
In one famous case, parents deducted clarinet lessons for their child because an orthodontist said playing the instrument could help the kid’s dental condition. While most musical lessons are considered entertainment or personal skill building, these lessons were medically beneficial. Cases like this are highly unusual and often depend on detailed documentation, but it shows how flexible tax interpretations can be.
5. Swimming Pools
Can you imagine writing-off your beautiful new backyard pool? Don’t get your hopes up just yet; this one only works under incredibly limited circumstances. Swimming pools installed for medical treatment may qualify for deductions. Some severe medical conditions benefit from daily water therapy, and doctors may expressly prescribe such activity. The taxpayer has to be prepared to prove the pool is almost exclusively for medical use rather than fun in the sun. Unsurprisingly, this deduction will likely draw close scrutiny.
6. Costume Expenses
We’re not talking Halloween or your best bud’s themed birthday party. We’re talking “work clothes.” Individuals are allowed to deduct expenses pertaining to work, and for a handful of occupations, costumes are necessary to make money. Actors and entertainers can deduct costumes used exclusively for work. The clothing can’t be suitable for everyday wear; a clown suit may qualify, while a business suit usually does not. However, auditions require a wide variety of looks, so some performers may be able to successfully write-off every piece of clothing they purchase, as long as they are earning income performing. However, the distinction between costume and ordinary clothing has led to many tax disputes over the years.
7. Moving a Historic House
Some taxpayers have gotten deductions related to preserving historic buildings. Moving or restoring certain historic homes can qualify for credits or deductions under specific programs dedicated to preservation. Restoring old homes can be enormously expensive, so certain government incentives encourage owners to preserve pieces of history rather than tear them down. Plus, these old structures can generate tourism to an area.
8. Writing Off a Yacht
This one may sound the most ridiculous of the entire list, but in some situations, taxpayers can get away with writing-off yachts. While these boats are excessively luxurious, yachts used substantially for business entertainment (otherwise known as schmussing) or charter services may qualify for deductions. Taxpayers must carefully document legitimate business use, as these expenses are obviously, well, extremely expensive! Taking a colleague on a vacation disguised as a business trip can trigger an IRS investigation. Understandably, this deduction is controversial because it can seem overly generous to those with extreme wealth.
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