Most Americans know that charitable gifts, retirement contributions, student loans and mortgage interest are tax deductible, but what about the pet, pool, private jet or cosmetic surgery?
It depends.
Over the years, the IRS allowed some unusual tax deductions, but the conditions were very specific. Basically, taxpayers must prove that the items were a necessary or legitimate business expense. It cannot be personal expenses.
Here are examples of extraordinary deductions that taxpayers have requested and received from the IRS. It is important to note that although approved, accountants recommend that you consult a professional before proceeding with any unusual deductions.
Breast implants
Cosmetic surgery is usually a personal expense and not tax deductible.
In 1994, however, self-employed exotic dancer Cynthia Hess (aka Chesty Love) won her tax case allowing her breast implants in 1988 to be considered a legitimate business expense and thus the cost could be deducted. She claimed that they were necessary to earn a living and that otherwise she would not have grown her breasts “to such an extent that they made her look ‘crazy'”.
The court ruled that breast implants satisfied a two-part test: (1) required as a condition of employment and (2) inappropriate for everyday use. The breasts were analogous to a ‘suit’, necessary for her work to make money, and because of how large they were, they were unsuitable for everyday wear, but could not be removed everyday.
Private plane
John and Joanna French they won their case in 1990 to write off their private jet on their 1984 taxes. They claimed they used it to fly to manage, advertise and rent their condo in Mammoth Lakes, Calif., from their home in San Jose, Calif., instead of driving 5½ up to 7½ hours each time. They argued that because the two worked full-time, it made sense for them to use a private jet to fly there to use their time efficiently rather than relying on one commercial flight a day to Mammoth Lakes.
The IRS argued that Mammoth Lakes was a vacation destination and those trips were personal expenses.
Ultimately, the court ruled that, given the circumstances, and if the French were flying there to personally manage their apartment, the expense was reasonable and therefore tax deductible.
Pets
If you just have pets “to love and spend time with, even if you’re showing them in a social media post, that animal won’t qualify for a tax deduction,” said Catherine Kauffelt, head of tax compliance at the Collective. The online support platform includes emotional support animals, which are not considered service animals because they are not specifically trained to support a condition.
However, there are some circumstances where pet-related deductions may be allowed:
- In 1995, scrap yard owner Samuel Sowright win $300 off cat food arguing that he had to put out cat food to attract feral cats to prevent snakes and rats from entering his yard. The key here is that it was used for his business.
- In 2011, Jan Elizabeth Van Dusen earned a $100 deduction for expenses related to raising a cat. Expenses classified as non-reimbursable expenses for services to a charity, the court decided. Note, however, that expenses of $250 or more would need written confirmation from the charity.
- If you are in the military, you can deduct the cost of moving your personal belongings to a new home, and household pets are treated the same as your other personal property, The IRS says.
- Costs associated with service animals may be are deductible as medical expensessays the IRS.
Incredible:Cat food and tanning oil? 6 outrageous tax breaks approved by the IRS
Swimming pools and other health aids
If you just want to go to a gym to exercise or stay in general good health, your membership will not be deducted.
But if your doctor prescribes something “for relief or prevention a physical or mental disability or illness,” you may qualify for a tax exemption, the IRS says. That “something” might be a pool, for example, if you need hydrotherapy to treat a condition.
Medora Lee is a money, shopping and personal finance reporter at USA TODAY. She can be reached at mjlee@usatoday.com and subscribe to her free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
