Tax season is in full swing and taxpayers are trying to figure out how they can maximize their tax refund with tax deductions. You want to take legitimate tax deductions and you already may know about your common tax deductions like deductions for your dependents, education expenses, or medical expenses, but what about bizarre tax deductions?
Before you get excited about some of the oddball deductions you’ve heard about we want to shed some light on some of the bizarre tax deductions you may or may not be able to take.
Girl Scout Cookies (Maybe)? – Well, not exactly. In honor of the Girl Scout Birthday today we thought we should clear the air about whether or not all of those boxes of delicious, addicting cookies you bought are tax deductible since Girl Scouts of USA are registered as a 501(c)(3) not for profit. The answer boils down to whether you eat the cookies or donate them to a charity. If you eat them then you cannot deduct what you paid for them, but if you donate them to charity then you may be able to take a tax deduction.
Exceptional Tree – If you are lucky enough to have a Norfolk Pine in your yard and live in the Aloha Sate (I call the later the most lucky), you may be able to deduct up to $3,000 to maintain this special tree.
Bad Loan – Not only has your friend been crashing on your couch all year (another $3,950 tax deduction), but they can’t pay back the money they owe you? If you made the loan with an official note, you may be able to deduct up to $3,000 for the amount not paid back.
Centenarian Deduction – New Mexico thinks you should be rewarded for paying taxes for so long (and so do I), so if you are one hundred or older you are tax exempt.
Animal Depreciation – Farmers may be allowed to deduct the depreciation value of their animals from their taxable income if they use their animals for breeding.
Pet Expenses – Sorry animal lovers not all pet expenses can be deducted, but you may be able to deduct certain expenses like food to maintain your pet or pets if they are used in your business. In 2000, one couple was allowed to deduct $300 for feeding stray cats as a business expense, since they own a junkyard, and the cats deterred rats and snake.