You'd Be Surprised at What's Tax Deductible

Wall Street Journal ^ | 02/12/2013 | RACHEL LOUISE ENSIGN

[SeekAndFind]

What's a more valuable tax deduction, a deadbeat boyfriend or a vicious guard dog? It depends on how big a deadbeat the boyfriend is.

No, this isn't a bad joke.

It's among the things taxpayers ask each year as they try to squeeze out whatever deductions they can.

And tax experts say they've heard it all.

Among the zaniest: How do I value a taxidermy I donated to charity? (It can involve estimating stuffing and mounting costs.) I'm putting a swimming pool in this year, I'm going to use it for exercise, can I deduct it as a medical expense? (Likely not.) What if my neighbor gives me a cow in exchange for help building a barn? (You must report the fair market value of that cow as ordinary income.)

Some people "are very creative and want to see if they can outsmart the tax code," says S. Miguel Reyna, a certified public accountant in Dallas.

Of course, many of the queries aren't so offbeat. Here's a sampling of questions that tax experts are often asked.

[kevkrom]

In their defense, they are just providing the official answer to the the question. If the IRS ever got return that actually LISTED a bartered cow they would probably blow it up and frame it as a once in a country’s lifetime event!

That'd be right there with reporting out-of-state (including mail/internet order) purchases for "use tax" (if sales tax wasn't already paid) on a state tax return. Sure, it's required by law, but most people don't even know about it, let alone do it.

[fnord]

Zero per cent income tax (individual and corporate)
One per cent national sales tax (to keep the lights on)
Some tarriffs and excises
All other government “income” comes from voluntary contributions

[Axenolith]

Under the Affordable Care act all you’re getting is a bottle of hand lotion and a subscription to Playboy...

[Michael Barnes]

An easier way is for states to halt the Federal Government from taking taxes directly from its citizens. The state would collect those taxes and hold them in escrow. If the Federal Government starts getting uppity, the state simply does not release the tax’s he;d in escrow. THAT would give each state tremendous power and put power back directly into the hands of the people of each state.

[Bloody Sam Roberts]

Again, you can only deduct medical expenses once they exceed 7.5% of your adjusted gross income...

That should be a breeze for a lot of folks after ObamaCare kicks into high gear.

[Durus]

How about 9%?

[AppyPappy]

An urban legend. A doctor would not prescribe sex and especially not sex with a prostitute.
You can handle that job by yourself.