This may come as a huge shock, but writers aren’t always able to come up with fascinating and blog-worthy ideas to write about at the drop of a hat. I know, I know, it sounds crazy, but it’s true. To combat this, sometimes we have to go back through what we’ve done in order to come up with something new.
That being said, welcome to ExpressTaxFilings’s SECOND installment of Crazy Taxes in the USA! Take a look at some of the inane laws that have actually been written into our federal tax legislature:
The Bodybuilder’s Deduction
Professional bodybuilders who buy and use special oils to prepare for competitions can deduct their cost, the Tax Court has ruled. The teeny-weeny speedos, though? Not so much, but more on that when we talk about uniforms.
The Drug Dealer Tax Break
And we’re not talking about pharmacists either. If money is made dealing illegal drugs, the IRS will still accept taxes on it. The Tax Court has clarified some details on this situation: the cost of the product is deductible; things like a headquarters or security are not. Learn from the mistakes of Mr. Capone: sometimes tax evasion is easier to prove than more insidious crimes, so be sure to at least always do your taxes.
The Starving Artist Deduction
Performing artists get a deduction for expenses they incur while employed under some pretty ridiculous specifications. If artists have at least 2 employers they receive at least $200 from each, their job-related expenses are more than 10% of their income, and their adjusted gross income doesn’t exceed $16,000, they can deduct art-related expenses (like pointe shoes, guitar picks, or paint).
The “I’m Never Seeing this Money Again” Write Off
Capital loss rules dictate that if you make a legitimate loan to someone with an official note, even if it’s to a family member, you can write the money off if you don’t get paid back, up to $3,000 a year with a maximum of $10,000 total. Just keep in mind that if they do pay you back later, you’ll have to pay taxes on the interest.
The Clown Suit Deduction
The joke goes that the difference between a lawyer and a clown is their clothes, and this is true to the IRS. Legally, a lawyer’s suits are not deductible while a clown’s costume (down to the big, red nose) is, and it’s all because of usability: if you can wear your uniform elsewhere, it’s not deductible.
The “It’s Just Stuff” Donation
If you donate your house to your local fire department to burn down for practice, you can deduct the loss — as long as you donate your land too. Sorry, no “donating” just to make room for a new house. But if you’ve got the house and land to spare, blast some Talking Heads while helping firefighters train and getting a valuable tax deduction.
That brings the grand total of crazy tax laws we’ve talked about to twelve, but that’s just the tip of the iceberg. There are many, many tax laws that are all on public record, so be on the lookout for more installments of Crazy Taxes in the USA!
In the meantime, if you have any questions or need assistance e-filing with ExpressTaxFilings, you can contact our friendly support professionals at our office located in Rock Hill, SC. You can call (704) 839-2270 Monday through Friday from 9 a.m. to 6 p.m. EST, email at email@example.com, or live chat with us at www.expresstaxfilings.com!