Sometimes taxpayers make situations out to be something they're not... Like when a person makes assumptions about what they can get tax deductions for.
Everyone wants to rack up tax deductions and credits when the winter season starts to wind down and spring approaches with it's tax season shadow. We've heard some funny questions, ones we've received and ones we've heard rumors of being received. Some of them may just make you shake your head. Check them out below!
Disclaimer: This is not tax advice... just a friendly, funny blog post. Talk to your tax accountant to understand what you can deduct from your taxes and what you cannot.
Your Gambling Losses - No. Just because you went gambling with a potential client, does not mean you can write off your gambling losses or claim they are charitable donations to a casino. Your winnings are taxable though! Better luck next time.
Your Gas - No. The IRS assumes you are going to use gasoline to drive your car to your job--no matter if you are an employee or the business owner. So deducting the gas from your normal commute to and from work? No.
Your Lunch - No. Again, IRS makes some assumptions about you. They believe you have to eat food. So you can't write off your daily lunches. Chipotle? No. Unless you're dining out to entertain a client or it's a business meeting. Yet... if you have a legitimate business reason (ie. no physical office) to work out of a coffee shop, you could write off those lattes. Starbucks, please?
Your Cell Phone - No. Everyone wants to write off their cell phone bill. You can only write off part of this bill up to the percentage to which the phone is used for business. But there's no way you never call Bae from same phone you use to chat with clients. Hello from the other side.
Your Party Boat - No. You cannot depreciate the costs of your new party yacht or boat that you hope to occasionally take a client fishing on. Bon Voyage.
Your Wedding Reception - No. Just because half the guests are business-related contacts, does not mean you can split the bill with the IRS. Prost.
Your Foot Powder - No. Just because you keep your feet hygienic and believe you make your office a better working environment, does not mean you can have a tax credit for having nice smelling feet. No thank you, Gold Bond.