No, I'm not pulling your leg. This Top 4 List of the Strangest Tax Deductions are 100% fact. They're not always right, and many don't get away with them, but strange tax offs never fail to be entertaining.Free Beer
Giving away free beer to bring in customers? Then the cost of the beer qualifies as a tax deduction. But you better be ready to prove that beer was for "business use only"!The Arson Idiot
A furniture store owner hired an arsonist to burn down his failing furniture store. He collected $500,000 in insurance money and nearly got away with the crime. In an idiotic move, he claimed the $10,000 consulting fee he paid to the arsonist as a deduction! He went straight to prison
and was hit with $6,000 in IRS fines.Breast Implants
Cynthia Hess, Stage Name, "Chesty Love" defended her right to write-off her breast implants. She made it all the way to the United States Tax Court and won, with the court saying that since she makes her living stripping, breast implants are an "ordinary and necessary" business deduction. Navajo Healing Ceremonies
New age alternative medical treatments like electric shock, whirlpool baths, and hydrotherapy can sometimes be deducted as legit medical expenses. But who knew Navajo Healing Cerminories, which remove pain and curses with chants and songs, can be deducted as long as it is "prescribed for a medical purpose or to alleviate a condition. The Sperm Wars
William Magdalin tried to deduct "sperm costs", but since the New York City law says the sperm costs must be for an underlying medical condition (whatever that means) his claim was denied.
William C. Naylor wants his Sperm Bank to Qualify for Nonprofit Status
. Sure, he donates sperm to "those in need", but only to a select few that qualify. On top of that, Naylor is the ONLY sperm donor. Obviously, Nonprofit status is denied to this "charity".
The Lesson of the Day:
Don't get too creative with your write-offs, claim what deductions you can, but don't get thrown in jail for trying to take advantage of a loop hole!