Some of the Most Amazing Tax Deductions Ever
At GROCO, we have been doing this for more than 50 years. That means we’ve heard just about every crazy tax story you can imagine. With tax season now officially in full swing we thought we would share some of the craziest tax deduction stories we’ve ever heard; and they’re all true.
A gas station owner gave away free beer at his gas station. At tax time he put all the expense for the beer on his tax return as a business expense. He told the IRS he was trying to entice new customers to pull in and fill up, which was actually a way to promote his business. The IRS agreed.
A couple managing some rental properties decided that they didn’t have enough time to drive around a mountain pass to visit all their homes. The couple decided to buy a private jet instead, so they could see their homes much quicker. They said it should be allowed as a deduction because it saved them so much time. The IRS agreed with them and said it should be allowed as a normal, ordinary and necessary business expense.
Another couple, which owned a junkyard bought a large supply of cat food and then claimed the purchase as a deduction. They said they needed to use the food to attract stray cats. Why, because they needed the cats to keep the rat and snake populations under control.
The best part about all of these stories is that they really happened and the IRS really let these people take these crazy deductions. There’s no question that these taxpayers knew how to milk the system. Want to hear some more crazy tax deduction tales? Just click here.
Estate Tax Confusion Continues as of 2/13/10
Estate Tax Confusion Continues as of 2/13/10 As of 2/13/10, U.S. estate tax outcomes — (and capital gains tax for the heirs) — for taxpayers who pass away in 2010, are becoming more confusing each day Congress does not act to replace expired laws. The following is a Wall Street Journal article on the complete…
Estate Tax Repeal or Revision?
Estate Tax Repeal or Revision? In 2010 the estate tax will be repealed and the gift tax rate will fall to 35%. However, this repeal is effective only for that year and the estate tax will be reinstated in some form the very next year (2011). The US Senate is considering options to reduce or…
Alternative Retirement Savings Plan: Tax Sheltered Annuity 403(b)
Alternative Retirement Savings Plan: Tax Sheltered Annuity 403(b) Tax-Sheltered Annuity (TSA), also known as a 403(b), is an alternative retirement savings plan. Not everyone can participate in this plan, and it is restricted to those who are employed by educational, cultural, or non-profit organizations such as religious groups (also known as 501 (c)(3) organizations). TAX-SHELTERED…
Updating Your Estate Plan
Updating Your Estate Plan It’s a good idea to update your estate plan every few years or after the occurrence of significant life events such as marriage, divorce, the birth of a child, or adoption. Even if you haven’t experienced any of these events since you last updated your estate plan, there may have been…