Tax Deductions You Didn’t Know Were Legal

It’s tax time, and those of you braving the process alone may not know of all the deductions available that will save you money. Among the lesser-known writeoffs:

  • Satellite radio. If you have a home office or small business and like to work in a creative ambience, you are allowed to deduct the cost of providing background music — including the purchase of stereo equipment.
  • Vacation. If your company sends you to Hawaii for a conference and you decide to stay on a few days for some extracurricular fun, some of that can be an allowable deduction. As long as the primary purpose of the trip is business, you can write off the costs of airfare, taxis or rental cars, and 50% of your business meals. 
  • Blackjack losses. Hopefully you already know that a casino is not a safe place to invest your money, but if you have gambling losses that don’t exceed your winnings, you’re allowed to write them off.
  • Getting into shape. People whose doctors have prescribed weight-loss programs may include the cost as a medical deduction.
  • Moving expenses. You’ll need to pass two criteria — the time test and the distance test – but many times, you can save big by deducting the costs of moving for a job opportunity, even if you are self-employed.

Just be careful not to push the envelope too far. Accounting pros recommend the “laugh test” — are you giggling about pulling a fast one on the IRS? If so, you might want to leave that deduction off your tax return.

2 Comments

  1. Posted April 9, 2009 at 10:58 am | Permalink

    I was a housewife, mother of 3 and did not work outside the home with a BS Degree in Hospital Dietetics. Then I decided to get my Masters locally and teach because it spoils the family life pattern to be gone on week-ends working at the hospital. I took every paycheck and deposited it in a College account for the oldest, and then for the other two. In that manner college expenses were available for each student. The only time I didn’t deposit was for gifts at Christmas time.

  2. Deborah Leigh
    Posted April 14, 2009 at 11:10 am | Permalink

    Allowing deductions for blackjack and vacations makes as much sense as fish ladders and more neon signs for Las Vegas.

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  1. By Econ4U Post Roundup - Econ4U.org on April 14, 2009 at 10:23 am

    [...] Tax Deductions You Didn’t Know Were Legal [...]

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