A Day in the Life: Humorous Tax Deduction Requests
Recently, I had an amusing day that I thought I'd share. I'm part of a Facebook group for bookkeepers and accountants, and the top post of the morning was titled "Funny Things Clients Have Asked to Deduct as Business Expenses." It started off entertaining and only got better as the day went on.
Here are some of the highlights:
One client asked, "I know you said I can't deduct a haircut as it's personal, but can I deduct hair gel since I only use it for filming videos?" This sparked a humorous debate about whether toothpaste and deodorant could be next on the list.
Another client in the performing arts wanted to write off bras and underwear as part of her "costume." This led to a lively discussion about whether implants could be considered a business expense for an exotic dancer. While creative, I'm quite certain the CRA and IRS would deny these claims!
A salon owner client wanted to deduct all her high-end clothing, shoes, and dry cleaning as "uniform expenses." She was gently reminded that only smocks and cover-ups qualify as uniforms—otherwise, we'd all be writing off our wardrobes!
Another client tried to expense new furniture, claiming it was necessary for meeting clients in her living room, even though she only used her office. She also wanted to write off landscaping as a home office expense, arguing it needed to look good for customers. Nice try!
While having a home office does allow for certain deductions, these requests were a bit over the top!
So, What Can You Actually Write Off?
This year, I've noticed the government conducting more "reviews" of electronically filed returns than before, so it's crucial to know the rules. Make sure you and your tax preparer are well-informed.
Always keep your backup paperwork. A credit card statement alone isn't proof of purchase, so retain the payment slip for any significant items you plan to claim as business expenses.
Avoid being reassessed years later and facing hefty interest and penalties for trying to deduct items that aren't legitimate business expenses. Trust me, learning the hard way isn't worth it.
Interested in a list of allowable business and home office expenses for your online business?
