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.
Tax Preparation Help: 5 Tax Deduction Myths
Tax Preparation Help: 5 Tax Deduction Myths By Ronn Espy There are a wealth of tax deduction myths, rumors and plain old wives tales during every tax season. Many opt not to get professional tax preparation help and file their own taxes based on misinformation, only to regret it later when the IRS comes calling.…
Is The IRS Above the Law?
Is The IRS Above the Law? By Alan Olsen, CPA, MBA (tax) Managing Partner Greenstein Rogoff Olsen & Co. LLP Have you ever wondered how the IRS truly operates? Have you ever contacted someone from the IRS with a tax problem or question and discovered that the person on the other end of the line…
IRS Updates Procedures for Reopening Closed Cases
IRS Updates Procedures for Reopening Closed Cases IRS issued Rev. Proc. 2005-32 On May 20, 2005, the IRS issued Rev. Proc. 2005-32, which updates procedures for reopening closed examinations under §7605(b) and describes when a case is deemed closed after examination. It also provides a nonexclusive list of contacts and actions by the IRS that…
Year-End Tax Tips For Investments
Year-End Tax Tips For Investments By Glenn Dahlke Yes, its that time of year again, time for every financial column to drum into your head all the year-end investing tax tips. It’s the equivalent of your list to Santa. You either take care of it by year-end or you take your chances. Consider yourself warned.…