10 Unbelievably Wacky Federal Tax Laws
If you make your money dealing illegal drugs, getting your taxes right might not be high on your list of priorities, but just because the money is made illegally, doesn’t mean the IRS won’t accept taxes on it. The Tax Court has clarified some potenti
If you make your money dealing illegal drugs, getting your taxes right might not be high on your list of priorities, but just because the money is made illegally, doesn’t mean the IRS won’t accept taxes on it. The Tax Court has clarified some potentially helpful details on the situation. (Remember, sometimes tax evasion is easier to prove than more insidious crimes. Think Al Capone.) Baggies and soil for marijuana plants are not deductible. Neither is the apartment you work from or the cost of your security team. However, you can deduct the cost of your product.
DN-0087660, Chicago Daily News negatives collection, Chicago History Museum
A stripper known as Chesty Love was allowed to write off her breast implants because they’re considered a stage prop. As it applies to business expenses, those assets can now be depreciated each year, even if her clients’ appreciation for them never
A stripper known as Chesty Love was allowed to write off her breast implants because they’re considered a stage prop. As it applies to business expenses, those assets can now be depreciated each year, even if her clients’ appreciation for them never diminishes.
Jerry Springer Show
Performing artists get a deduction for expenses they incur while employed under certain circumstances, which seem almost ridiculous in their specificity: They have to have at least two employers and receive at least $200 in income from each; job-rela
Performing artists get a deduction for expenses they incur while employed under certain circumstances, which seem almost ridiculous in their specificity: They have to have at least two employers and receive at least $200 in income from each; job-related expenses are more than 10 percent of income from performing artist jobs; and their adjusted gross income cannot exceed $16,000. If they meet those requirements, they can deduct art-related expenses. Pointe shoes, guitar picks, and paint cans really add up.
REUTERS/Carlo Allegri
Can an overbite be cured by a clarinet? The taxman says yes. In the case of a girl with an overbite whose doctor recommended therapeutic clarinet lessons, the music lessons were deemed a medical expense by the IRS.
Can an overbite be cured by a clarinet? The taxman says yes. In the case of a girl with an overbite whose doctor recommended therapeutic clarinet lessons, the music lessons were deemed a medical expense by the IRS.
REUTERS/Eloy Alonso
If you rent space for fewer than 15 days in one calendar year, all the related income is completely tax free. If you rent it out for more than 15 days, “your income is taxable as rental income and you could allocate certain expenses,” says H&R Bl
If you rent space for fewer than 15 days in one calendar year, all the related income is completely tax free. If you rent it out for more than 15 days, “your income is taxable as rental income and you could allocate certain expenses,” says H&R Block’s Charney. So listen up, New Orleans and New Jersey taxpayers: Two weeks is the max for renting out your house for the Super Bowl. Hamptons homeowners likely already know the rule.
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“What’s the difference between a lawyer and a clown,” asks Theodore Prioleau, a financial services consultant in Maryland who’s better known as Teddy the Taxman. “You might say the clothes, and you’d be right.” The lawyer’s impeccable suits are not t
“What’s the difference between a lawyer and a clown,” asks Theodore Prioleau, a financial services consultant in Maryland who’s better known as Teddy the Taxman. “You might say the clothes, and you’d be right.” The lawyer’s impeccable suits are not tax deductible, but the clown’s costume is, “including his big red nose,” Teddy says. It has nothing to do with taste and everything to do with usability of the clothes. If you can wear it somewhere else, it’s not deductible.
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Capital loss rules dictate that if you make a legitimate loan to someone with an official note, even if it’s your brother-in-law, 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. Caveat: “If
Capital loss rules dictate that if you make a legitimate loan to someone with an official note, even if it’s your brother-in-law, 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. Caveat: “If they do pay you back, you’ll have to pay taxes on the interest,” says Prioleau.
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If you donate your house to the local fire department to burn down for practice, you can deduct the loss – as long as you donate your land too. There have been a number of cases related to this, says Charney. It’s best to tread lightly in this area a
If you donate your house to the local fire department to burn down for practice, you can deduct the loss – as long as you donate your land too. There have been a number of cases related to this, says Charney. It’s best to tread lightly in this area and avoid “donating” your house for firemen to raze if it’s only to make room for a new one. That kind of generosity doesn’t count.
REUTERS/Andrew Burton