Friday, April 15, 2011

Deduct This!

Since it's April 15th - although it's technically not, as we said earlier this week, Tax Day - let's take a look at some of the crazier things people have tried to claim on their taxes, courtesy of Bankrate.com. Let's hope you didn't try to pull any of these:

* A CPA from Voorhees reports that a client handed in a very detailed diary of his expenses for a prior year, for which he was being audited. The only problem: The diary was a generic kind, not pegged to any specific year, and the copyright date on it was a year later than the year the IRS was looking into.

* Another New Jersey CPA had a client who listed a deduction for "exterminating expense." It turns out the exterminator was really his cat, and the expense was the cat's vet bills.

* Down in Texas, a doctor tried to list as a business expense something he called a "time monitoring system." When his accountant asked him what that was, the doctor rolled up his sleeve and showed off his Rolex.

* Then there's the man in Oklahoma whose wife had passed away. He gathered up all her underwear and donated them to charity, claiming a considerable deduction in the process. And the IRS allowed it.

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