Every year when tax season comes up, many businesses across the nation begin researching which kinds of deductions they’re eligible for before they file their taxes. Some businesses have come up with some fairly creative deductions which have surprisingly been allowed by the IRS. The deductions listed below have all been allowed by the IRS at some point, but before you claim them for your business, you may want to consult with a good business tax lawyer.
Surprising Tax Deductions
Here are some of the business tax deductions which you wouldn’t immediately think about, but which have been accepted by the IRS in the past:
- Free beer – a tax court ruled in the early 1980s that a business could write off free beer which was supplied to customers as a means of encouraging more business.
- Ransomware – businesses that have been forced to pay blackmail money to ransomware hackers have been allowed to write off the cost of that payment.
- Limousines – when you need to rent a limousine for work purposes, for instance as a model or an entertainer, you’re allowed to write that off as an expense.
- Gym membership – this might qualify as a medical expense if your doctor qualifies you as having a medical condition.
- Office fitness – if you maintain an office gym at your establishment, you can deduct all expenses necessary to maintain it.
- Hair dye – business owners who have dyed their hair and claimed that it has become part of the company’s branding, have successfully claimed a deduction for hair dye.
- Pets on the job – when you use pets as part of your business, some expenses might be deductible, for instance, if you use them in advertising materials, or if they serve as a guard dog.
Need Funding to Pay Your Business Tax?
It can be a bit of a shock when the calculations are done and you see just what you owe for business taxes. If you need money to manage that, contact us at Impact Commercial Capital. and we’ll be glad to discuss some options with you.