4/13/2005

Taxes-Is My Cat Deductible?

This article, released on ABC News, talks about some of the most unusual tax deductions asked about. One deduction that was made legitimate was if you are a body builder, the baby oil you rub on before competitions can be considered a tax break. Also, women who get breast implants for their "careers" are also eligible to receive a deductible on their taxes, claiming in the category as a "stage prop". In one case, clarinet lessons were considered tax deductible because the orthodontist recommended that a child learn the instrument to correct a severe overbite.

These are just a few of the interesting things this article had to say. It has come to the point where people are searching for every way possible to get any kind of break on taxes each year. Is it getting to a point where it is just ridiculous, or is it okay to try and justify every single cent and try to get all the tax breaks possible? Where do we cross the line?

2 comments:

sam said...

This isn't any different than those who cut the coupons out of the newspaper to save a couple bucks. It is a matter of those who know and those who don't. Deductions are similar to coupons sent out in the mail. If you know where to find the best deals you are going to go there. It is the same with deductions. When there is a possibility of saving money someone is going to use it.

Dr. Tufte said...

I think this is an inherent risk in taxing income. If you buy something to help you earn income, most people would agree that you only should pay tax on the net gain. I actually don't have a problem with any of the three deductions mentioned by Fred.

This is part of what Landsburg is driving at in Fair Play: a head tax avoids all these problems.