The U.S. tax system isn’t the easiest thing to navigate and it is unlikely to change any time soon, despite presidential promises.
But there are interesting ways you can save money by finding if you can use any of these three odd tax deductions. They aren’t illegal or even shady loopholes, but it could surprise you to find that they may apply to you and save you some money on your taxes.
Your Health Can Be Tax Deductible
There are actually several ways your health can be tax deductible. Some ways you may not have considered are:
- Installing a pool for medical purposes – Before going wild and using your scoliosis as a reason to get a free pool courtesy of the IRS, pump the breaks. While a man was able to deduct the installation of his in-ground pool, it was strictly for medical purposes. So no pool parties along with your medical needs.
- Quit smoking – You may qualify for a tax write off for using a smoking cessation program, quitting aids, etc. Feel free to check with your accountant if your method qualifies.
- Get in shape – If your doctor has recommended you get in shape and indicated your life may be in danger if you do not, you could get the course your doctor recommends you follow written off at tax time.
Write Off Rent/Mortgage When Applicable
If you run a business, you know that business taxes are a difficult matter. But if you run one from your home, you may be able to deduct some of your rent or mortgage from your taxes as a business expense.
However, there are fairly stringent rules set down by the IRS governing deducting business expenses. Some basic requirements to deduct rent as a business expense are:
- Area only used for business – This part of your house has to be set specifically set aside for your business. So like the pool, it cannot serve any other purpose.
- Conduct business regularly there – The part of your home (whether attached to the house or a structure on the property) has to be regularly used as a place where you do business, not an additional rented office or coffee shop.
- Importance of activity – You may need to prove that you cannot perform your work elsewhere and that it is a key part of your business
On the plus side, if you can prove your home business deduction, things like utilities, repairs, insurance and depreciation can also be written off.
Deduction For Childcare Cost
Want to volunteer for a charity but can’t afford childcare as you work for the charity? One woman successfully filed the costs of her babysitter’s cost as a donation to the charity she was helping.
As she wasn’t compensated in any way and had records to prove the time she had spent correlated with the costs, she managed to get the costs written off!
To make sure you get all your bases covered, be sure to contact us at AA Tax and Accounting Services and be secure in the knowledge that the experts are on the job.