Tax Defense Network: Unlikely Deductions
Tax Defense Network believes every taxpayer wants to increase their deductions and save on taxes. Most taxpayers are aware of common deductions such as medical expenses, charitable contributions, educational expenses and home mortgage points, but there some deductions that most taxpayers do not know about. Tax Defense Network lists the most unlikely deductions below.
Tax Defense Network: Blog Deduction
Tax Defense Network informs American taxpayers that if their blog or website is earning revenue, they can claim a deduction for the expenses. Tax Defense Network points out the important thing to consider is whether you are running your blog as a non-profit venture or as a for-profit business. The former will not get you a deduction, but a profit-making venture treated as a business is entitled to a deduction for ordinary and necessary business expenses.
Tax Defense Network briefs that blogs mostly earn their income from advertisements. Expenses can be the fee you pay to set-up, design and maintain the blog. You can also claim expenses involving research and rent for a place to operate. Any expenses incurred for the purpose of running and maintaining the blog can be claimed as an expense and deducted from the profit generated by the business.
Tax Defense Network advises taxpayers not to exaggerate expenses. Tax Defense Network warns that if the IRS detects any purposeful exaggerations, you will need to provide proof of the expenses.
Tax Defense Network: Pets are Tax Deductible
Tax Defense Network understands that for those who keep pets they are the most lovable creatures, but the IRS has a different take. According to tax code, pets are not dependents, but if the pet is part of a business such as photography or policing, a taxpayer can deduct any expenses that are “ordinary and reasonable.” Tax Defense Network states that the taxpayer will need to have documented proof that the pet is part of the business, and the business falls in the business category, not as a hobby.
An unlikely deduction you can claim is when you are moving a pet from an old residence to a new one, Tax Defense Network says. Because you are able to deduct your moving costs and your pet is considered part of the furniture, you get deduction for moving your pet too. However, if on the way, your pet damages any of your property, you cannot claim deduction for that loss.
Tax Defense Network has witnessed to some of the most unlikely and surprising deductions. A junkyard couple once claimed deduction for the expenses incurred on cat food when they fed a colony of cats living in the junkyard with the thought that cats ate rats and other rodents thereby making the place safer for their customers. They received the deduction.
Tax Defense Network believes that if the intention is right and even if the rationale may sound a bit odd, you might just get the most unlikely deductions.