Most Americans know charitable gifts, retirement contributions, student loan and mortgage interest are tax-deductible, but what about your pet, swimming pool, private jet or cosmetic surgery?
It depends.
Over the years, the IRS has allowed some unusual tax deductions, but the circumstances were very specific. Basically, taxpayers must prove the items were necessary or a legitimate business expense. They can’t be personal expenses.
Here are examples of extraordinary deductions taxpayers have asked for and received from the IRS. It’s important to note that even though these were approved, accountants recommend you consult with a professional before pursuing any offbeat deductions.
Breast implants
Cosmetic surgery is usually a personal expense and isn’t tax-deductible.
In 1994, however, self-employed exotic dancer Cynthia Hess (aka Chesty Love) won her tax case allowing her breast implants in 1988 to be considered a legitimate business expense and could, therefore, have the cost be deducted. She argued that they were necessary to earn a living and that she otherwise wouldn’t have enlarged her breasts “to such an extent that they made her appear ‘freakish.’”
The court decided the breast implants satisfied a two-part test: (1) required as a condition of employment and (2) unsuitable for everyday use. The breasts were analogous to a “costume,” necessary for her job to make money, and because of how large they were, they were unsuitable for everyday…
