Welcome!

News Feed Item

MNCPA issues list of strange and unusual tax deductions

MINNEAPOLIS, Feb. 11, 2014 /PRNewswire-USNewswire/ -- The Minnesota Society of Certified Public Accountants (MNCPA) recently conducted its annual CPA member survey about the most strange and unusual tax deductions proposed by clients. Responses included everything from pets and wedding rings to gifts not given.

"There are always exceptions, but many of the deductions our members identified would've resulted in questions from the IRS had a CPA not encouraged tax filers to remove them from their tax returns," said MNCPA Chair Dave Stene. "Claiming an error because tax preparation software said it was 'OK' doesn't cut it with the IRS."

Here is the MNCPA list of the best strange—and unacceptable*—deductions for 2013:

1. A fur coat worn to promote a cleaning business: As one tax filer learned, you'll never outfox the IRS. And, we can't help but wonder, what would the fox say?

2. A wedding ring: A diamond is forever, and so is a taxpayer's inability to deduct the cost of a wedding ring.

3. 101 dog deductions: Expenses for dogs, dogs as guard dogs, a small dog as a "burglar alarm," dog adoption costs, and even a dog as a dependent. CPAs heard it all this year. That's 101 "uh-uhs" from CPAs and the IRS.

4. An ATV as a medical deduction for stress relief: No doubt, it's fun to go out and let 'er rip on the trails. But, the CPA and the IRS weren't buying the ATV as a medical deduction in this case. 

5. Placing a business sign on a personal automobile and writing off the car as an advertising expense: The CPA had to put this message in bright lights: "Not deductible."  

6. A family vacation: Ahh, the crystal-clear emerald water, the exquisite sand beaches, the cool ocean breeze. We hope the family enjoyed the vacation more than the tax filer enjoyed hearing the news that it wasn't deductible.

7. A $1 million dollar deduction for a contribution of land without an appraisal: Beauty may be in the eye of the beholder, but this generous donor learned the hard way that property value is not.

8. Infant "employee": Sure, you can bring your children into the family business and count them as employees. But, as one business owner discovered, children who can't yet walk or talk rarely qualify. Plus, they want everything handed to them.

9. A large charitable deduction for a gift not given: One taxpayer thought that everyone could deduct a certain percentage of their income as a charitable deduction. Good news: They can! Bad news: They need to actually make the donation.

10. School lunches as a business expense: As one business owner learned, unless her child is closing business deals with other first-graders at the school, these lunches aren't deductible.

11. Claiming a home theater as "video conferencing equipment": As soon as a CPA got her hands on this taxpayer's return, that proposed deduction was "Gone with the Wind."

12. BOTOX and tanning: One poor filer couldn't even furrow her brow upon learning that these expenses weren't deductible.

* Taxes are complicated. Each situation is unique and depends on the facts and circumstances involved. Consult a CPA for information on what may be allowable for your specific situation.

Questions about what you can and can't deduct on your taxes? Contact a CPA. Don't have one? Visit www.CPAmeASAP.com, or call 800.331.4288.

CONTACT: Tanya Mellen, [email protected], 952-885-5530 (work), 612-558-2064 (cell); Corey Butler, [email protected], 952-885-5533 (work); Marina Maric, [email protected], 612-801-6255 (work cell)

SOURCE Minnesota Society of Certified Public Accountants

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I think DevOps is now a rambunctious teenager – it’s starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
As enterprise cloud becomes the norm, businesses and government programs must address compounded regulatory compliance related to data privacy and information protection. The most recent, Controlled Unclassified Information and the EU’s GDPR have board level implications and companies still struggle with demonstrating due diligence. Developers and DevOps leaders, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by in...
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained Michael Fuhrman, Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
"We are an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...