infographic

Crazy Tax Deductions #Infographic

Crazy Tax Deductions #Infographic | www.TheHeavyPurse.com

TGIF, my friends. We made it through another week and month. It’s hard to believe it’s almost March, which also means we’re closing in on April 15th. We’ve been doing a deep dive on taxes this month, and I thought it would be fun to share a more lighthearted tax post today. Everyone loves a good tax deduction, but unfortunately, the IRS doesn’t always agree with our reasoning.

I found this fun infographic on some of the craziest tax deductions people have tried. Sometimes they succeeded while other times, they didn’t. Did breast augmentation get a stamp of approval from the IRS? How about Super Bowl tickets? Read on and find out.

Craziest Tax Deductions #Infographic | www.TheHeavyPurse.com

Which deduction surprised you the most?

Have a great weekend, everyone.

Shannon

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February 27, 2015  •  24 Comments  •  infographic

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  1. Laurie @thefrugalfarmer
    Friday, February 27th, 2015
    You have to admire the ingenuity of these people. If the fur coat guy would have been smart, he would have hired his wife as an employee first, and then written the coat off as a bonus. ;-)
    Reply
    • Shannon Ryan
      Sunday, March 1st, 2015
      HA! I bet he wishes he would have thought of that. :)
  2. Kalen Bruce @ MoneyMiniBlog
    Friday, February 27th, 2015
    HA That's crazy. Didn't Martha Stewart do some time in prison, though? Or am I thinking about someone else?
    Reply
    • Andrew@LivingRichCheaply
      Friday, February 27th, 2015
      She did some time in prison for insider trading not tax evasion. Actually I didn't know she evaded her taxes too. I just looked it up and it said that she didn't pay property taxes on her house in the Hamptons. Apparently she didn't think she had to pay since she didn't use it that often....haha, really??
    • Shannon Ryan
      Sunday, March 1st, 2015
      I thought she went to prison for insider trading because I remember it being a big deal a few years ago. She has an interesting take on property taxes because sadly the amount of time spent on the property doesn't affect how much we pay or having to pay. :)
    • Shannon Ryan
      Sunday, March 1st, 2015
      She did do time in prison but that was insider trading, I believe. :)
  3. John @ Frugal Rules
    Friday, February 27th, 2015
    Ha ha, these are awesome! I don't know which one is crazier though - the "dancer" or the arsonist. With how messed up the tax code is, I guess it shouldn't surprise me that some of these passed. Have a great weekend Shannon!
    Reply
    • Shannon Ryan
      Sunday, March 1st, 2015
      The "dancer" made me laugh because good for her for making her case. :) The arsonist must not have thought the IRS would look that closely as his employee deductions. But arson as a reason for payment is probably going to catch their attention. LOL!
  4. Tonya@Budget and the Beach
    Friday, February 27th, 2015
    I have a friend who admitted to me she has not paid taxes in two year, but thinks it's totally fine. I care for her, and my jaw dropped, but I don't think I can convince her of the serious ramifications of that. Crazy huh?
    Reply
    • Shannon Ryan
      Sunday, March 1st, 2015
      Oh my. There are definitely ramifications and it would be much better for her to get ahead of them, rather than have them catch-up to her. Definitely, crazy!
  5. Shannon @Financially Blonde
    Friday, February 27th, 2015
    This is a great infographic! I love that the junkyard owner wrote off cat food to help protect his property from critters. We have a cat and when I first saw that, I was hoping there was a cat loophole I could take advantage of this year. Sadly, ours is an indoor cat who does not protect our property from any critters.
    Reply
    • Shannon Ryan
      Sunday, March 1st, 2015
      We have a cat too, but I can't think of a loophole where I can deduct his food or littler. But on the plus side, I don't have a rat problem, so it's probably better he is just a pet!
  6. Dee @ Color Me Frugal
    Friday, February 27th, 2015
    Omg, the arsonist one cracked me up! And I cannot believe that someone got away with deducting a swimming pool!
    Reply
    • femmefrugality
      Friday, February 27th, 2015
      I wonder if he's going to continually deduct upkeep since he got away with installation?
    • Shannon Ryan
      Sunday, March 1st, 2015
      Oh, good question. I'm sure he would try but whether the IRS would approve, I don't know!
    • Shannon Ryan
      Sunday, March 1st, 2015
      The arsonist one made me laugh too! It's amazing how people can make good cases for some of their deductions. :)
  7. DC @ Young Adult Money
    Friday, February 27th, 2015
    Wow $15M in unpaid taxes?!? Such a huge amount. One issue with taxes - especially with celebrities - is that people who are high earners have to rely on other people to file their taxes. If you don't have a reliable accountant supporting you, you will likely find yourself in trouble.
    Reply
    • Shannon Ryan
      Sunday, March 1st, 2015
      Yes, many celebrities get in trouble with unpaid taxes because they don't understand how they work and just trust that it's being taken care of. Sometimes they get taken advantage of, which is incredibly unfortunate, and sometimes they surround themselves by yes-men too.
  8. Stefanie @ The Broke and Beautiful Life
    Saturday, February 28th, 2015
    I wonder how the pot plants will be treated now that they're legal in some states. Seems like a legitimate deduction for a Colorado or Washington based marijuana business.
    Reply
    • Shannon Ryan
      Sunday, March 1st, 2015
      I imagine in states where pot is legal and are part of a business, then they would be an acceptable deduction. Places were marijuana is still illegal may find themselves in trouble, like the owner who deducted the cost of his arsonist.
  9. Jayson @ Monster Piggy Bank
    Saturday, February 28th, 2015
    Surprised that Nicolas Cage is listed. I thought he was paying taxes because I saw him on TV when he discussed that he always paid his taxes and good at managing money.
    Reply
    • Shannon Ryan
      Sunday, March 1st, 2015
      I think he has been paying off his back taxes and is hopefully keeping current today, but he did get fined quite heavily because of unpaid taxes a few years back. I believe he sold quite a bit of property and some memorabilia to pay it down.
  10. Kayla @ Shoeaholicnomore
    Monday, March 2nd, 2015
    Some of these are quite funny. It reminds me that I really need to crack down and get my taxes done. I can't believe it's already March... Ugh!
    Reply
  11. Gen Y Finance Guy
    Tuesday, March 3rd, 2015
    Note to self, make sure I get a doctors note when I put in a pool so that I can write it off on my taxes.

    That will be a nice windfall year :)

    Thanks for sharing!
    Reply
Shannon Ryan SHANNON RYAN, CFP®

  • Meet Shannon

    "As a Certified Financial Planner, it is my passion to help individuals and families build a healthy relationship with money. I look forward to helping you raise financially confident kids.” - Shannon Ryan
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