Tuesday, April 15, 2008

Happy Tax Day!

I hope your taxes are already done, you have your refund back and spent! If you have to pay taxes this year, hopefully it wasn't a lot of green you had to shell out to the IRS. Either way, here are some creative deductions to think about for next year! I found these and other interesting facts on chiprowe.com
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Breast Implants: A Detroit stripper named Chesty Morgan took the IRS to court after it refused to allow a $2088 deduction for her implants. The judge ruled in her favor, comparing the implants to special work clothes.

Beer: A tax court allowed a gas station owner in Oklahoma, to deduct the cost of the beer he put in a soda machine for customers to grab as they filled up.

Bribes: William Zack bribed a Ford employee to get contracts from the automaker. When the scheme collapsed, the IRS demanded taxes for unreported income of $310,000. Zack claimed that not all of the money had been income because he had merely been a "conduit" for the bribes taken from his company coffers and given to the Ford employee. An appeals court allowed him to exclude $90,286.

Concert Tickets: An attorney tried to deduct $60,000 for front-row concert tickets he bought from scalpers. He claimed that by getting front-row seats for clients, he gained exposure to rock groupies, roadies and musicians who might someday hire him as an attorney It's not clear what happened to the attorney, but he ended up as a case study in a training manual for IRS auditors.

Hookers: A former Treasury Department budget analyst deducted the cost of visiting brothels and hiring hookers as business expenses because he said he was researching a novel. A tax judge disallowed the hookers.

Lunch: Two Minnesota state troopers argued in tax court that they should be allowed to deduct the cost of lunch. A judge allowed it, but only because the officers had to eat lunch at a specific time and a specific restaurant. The ruling led to a widespread belief among cops that they can deduct $7.50 per day for lunch.

Payphones: Last year the IRS began cracking down on a scam in which entrepreneurs start a "business" by purchasing a pay phone that has volume controls, then claim a Disabled Access Credit of up to $5000.

Vacations: Many lawyers and doctors attend "continuing education" seminars held at golf resorts. The IRS says these seminars must improve professional skills and last a reasonable amount of time. To organizers, that means four hours a day over five days. The kicker — the seminars are all on videotape, so attendees can watch one each morning before tee time.

1 comment:

Anonymous said...

Are you serious? People are crazy :) I do like the supposed "research" being done in the brothels and the police lunch! Thanks for sharing...this was cool & appropriate for today!