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There is no limit to the ways that taxpayers will try to minimize their taxes through "creative" accounting. By pulling and stretching the tax laws as far as they will go (and sometimes beyond), we can get an idea of where the boundaries of these ever-changing rules and regulations actually lie. Subject to the next Tax Court ruling, that is! Read along for some of the more entertaining attempts – many of them were actually allowed! Ridiculously Large Breast Implants – ALLOWED The Tax Court ruled that stripper Chesty Love could take a business deduction for these because they were not suitable for normal street wear! Committing Your Mentally Ill Spouse To An Institution – ALLOWED The legal fees involved are deductible as a medical expense. Business Costs Of An Illegal Bookmaking Operation – ALLOWED The income is taxable and the lawful costs of running the business are deductible. The Kids’ Allowance – ALLOWED Just hire them to work in your business and it becomes a business expense! Bill & Hillary Clinton’s Presidential Underwear – ALLOWED The Clintons got a $2.00 per pair deduction when the undies were donated. Executive’s Wife’s Mink Coat – NOT ALLOWED Even though she wore it to places frequented by clients, it qualified as street wear and was not deductible. Navajo Singers Used In Healing Ceremonies – ALLOWED The Tax Court ruled that these were in line with the intent of medical expense deductibility. The Cost Of Rebuilding The House You Burned Down To Get Even With Your Wife For Sleeping With Another Man – NOT ALLOWED Criminal intent voided the man’s insurance coverage and his ability to get a casualty deduction. Replacement Cost Of Wife’s Diamond Ring Ground Up In Garbage Disposal – ALLOWED The Tax Court judge allowed this because it was accidental. African Safari Taken By Owners Of Dairy Business – ALLOWED This was allowed because the dairy’s advertising, marketing and promotional activities were successfully based on wild animals. Air Space Rights Above A Building Given As A Charitable Deduction – ALLOWED This was deemed legitimate because air space rights are a right of ownership and can be given away. The building was also designed for additional floors that could be built on top of the existing ones. Buying Postage Stamps And Not Using Them – NOT ALLOWED The taxpayer unsuccessfully claimed that his not using the stamps benefited the federal government. 700-Pound Halibut Caught On Alaskan Fishing Vacation And Donated To Salvation Army – ALLOWED At a market price of $7.99 a pound, the couple paid for their entire vacation with this deduction!
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