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Crazy Tax Deductions: 10 Claims That Didn't Quite Fly

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Tax deduction traps By Peter Blank, Editor, The Kiplinger Tax Letter

Over the years, taxpayers have concocted a lot of zany arguments to justify tax deductions. We've come up with what we think are the 10 most creative ones that the tax courts decided didn't quite pass muster.

As secret agent Maxwell Smart would say, "Missed it by that much!"



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TurboTax Articles

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

Are You Exempt From Health Care Coverage?

The Affordable Care Act, or Obamacare, is an individual mandate that requires all eligible Americans to have some form of basic health coverage by 2014. Those without insurance will receive a penalty when they file their tax returns ? that is, unless they have an exemption. TurboTax's Exemption Check can help you find out whether or not you qualify for an exemption.

Mortgage Refinance Tax Deductions

When refinancing a mortgage to get a lower interest rate or obtain more favorable loan terms, you're really just taking out a new loan and using the money to pay off your existing home loan. In general, the same tax deductions are available when you're refinancing a mortgage as when you're taking out a mortgage to buy a home.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

Rental Property Deductions You Can Take at Tax Time

Rental property often offers larger deductions and tax benefits than most investments. Many of these are overlooked by landlords at tax time. This can make a difference in making a profit or losing money on your real estate venture. If you own a rental property, the IRS allows you to deduct expenses you pay for the upkeep and maintenance of the property, conserving and managing the property, and other expenses deemed necessary and associated with property rental.

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scottee

Americans already waste $431 billion per year complying with our tax code, yet the IRS is clearly incapable of doing its part by providing basic services to those taxpayers – such as picking up the phone. What does the IRS demand as a solution to its failures? More of your money. That’s right – the IRS wants an increase to the $11.8 billion they have already been given.

We don’t need to reform the IRS; we need to eliminate it.

That is why I am championing H.R. 25, the FairTax, which would dismantle the IRS and replace our current tax code with a 23% consumption tax at the final point of purchase for new goods and services. Not only would the FairTax do away with the headache of income tax compliance, it would also replace all other federal taxes. Congress wouldn’t need to continue debating whether or not Americans should get another two-month “holiday” from the payroll tax – the FairTax would permanently eliminate it. We wouldn’t have to keep fighting over which industries should continue to be subsidized with federal dollars in this budget-slashing era; the FairTax would eliminate them all and level the playing field for everyone.

January 21 2012 at 8:29 AM Report abuse rate up rate down Reply
belldn3

Now that's a man who loves his porn. I have spent money on it, but not that much. Movies, not ladies of the night.

January 19 2012 at 7:41 PM Report abuse +1 rate up rate down Reply
JIMMY

Well.......prostitutes are cheaper than wives, and complain less.

January 19 2012 at 5:17 PM Report abuse +2 rate up rate down Reply
teltech543

Crap. So much for my "massage therapy" deductions.

January 19 2012 at 5:04 PM Report abuse rate up rate down Reply
amikebec

thats correct, if if you want a job done right, either hire a professional or do it yourself.... :D

January 19 2012 at 5:01 PM Report abuse rate up rate down Reply
HELLRAISER

Prostitutes, good for America, IRS bad.

January 19 2012 at 4:53 PM Report abuse rate up rate down Reply
CraZyDiaMond2020

I LMAO THANKS!!!! STILL LAUGHING, THESE COMMENTS WERE THE BEST!!!!

January 19 2012 at 4:45 PM Report abuse rate up rate down Reply
z06corvette500

A prostitute.The best thing about them?You only have to pay them once not weekly.lol

January 19 2012 at 4:40 PM Report abuse rate up rate down Reply
Lightning F2A

Ahh prostitutes, the perfect woman - she always says yes and you get to see her leave when you're done.

January 19 2012 at 4:22 PM Report abuse +1 rate up rate down Reply
2 replies to Lightning F2A's comment
vanessaem

Your perfect woman is someone you have to pay to every time you have sex? I guess you can't get it any other way...lol.

January 19 2012 at 4:32 PM Report abuse -1 rate up rate down Reply
2 replies to vanessaem's comment
howardfrenkfort

He just prefers to pay as you go instead of the lump sum method.

January 19 2012 at 4:38 PM Report abuse +1 rate up rate down
likecandy7

Every man pays, only b/c every woman expects to be paid.

January 19 2012 at 5:26 PM Report abuse -1 rate up rate down
adstith

Your getting some flak for your Comments..I thought it was really funny. Ya gotta be divorced, I am!! thats why we find it funny

January 19 2012 at 4:41 PM Report abuse rate up rate down Reply
ketavan

http://www.youtube.com/watch?v=jhUkGIsKvn0

January 19 2012 at 4:16 PM Report abuse rate up rate down Reply