Writing off assets for tax purposes is often a murky area in tax legislation.The SARS website mentions assets such as machinery, plants, vehicles and even ships and airplanes.TAXtalk searched the Internet and came to the realisation that the Americans are much more creative when it comes to write offs.The following was found on the ABC News website.
The tax code allows Americans to write off unusual assets, but beware: the IRS may get suspicious.A tip for those scrambling to get their taxes done: If your body's a business, you can write it off.The tax code, which everyone loves to hate, has allowed people to write off some pretty unusual assets."Americans have a long history of creativity with respect to their tax deductions, but for some reason as of late they have become even more creative than they have in the past," said Martin Moe,vice president of AOL Money and Finance.One exotic dancer was allowed to deduct her breast implants after a judge ruled they were stage props.Pet food can also be a deduction if a dog or cat keep a business property safe.
If you have a private jet, you probably don't need the extra cash But if you use the plane to tend to a second home, you may be able to deduct it.And if your business is at home, you may be sitting on some hidden deductions."One tax court ruled that landscaping costs were a legitimate business expense for a business owner who hosted many clients at his home," Moe said.Splurging on a new swimming pool? The IRS will let you write it off if your doctor prescribes swimming as a medical treatment.But doctors' orders don't always mean money in the bank.The IRS doesn't consider dance lessons a legitimate medical treatment.
Before trying to claim a wacky tax deduction, know that sometimes unusual claims like these raise red flags with the IRS, and can lead to audits.Be careful when claiming dependants: Dependants with fur aren't necessarily as viable as those that walk and talk."People often come in and wonder if they can deduct their pet as a dependant," said Vincent Vasquez of H&R Block. "And my response is, 'If you can get your pet a Social Security number, then we'll talk about it.”
Source: ABC news (TaxTALK)