Surprising Ways to Write Off Taxes
As an accountant, I’ve helped clients claim some very specific tax write-offs that pertain to their unique situations and livelihoods. Below are a few surprising tax write-offs that could save you money.
Gambling Losses
While gambling winnings are taxable, you can deduct any losses up to the amount of your winnings, including losses from lotteries, raffles, and casino games. For example, If you won $5,000, you can deduct up to $5,000 in losses, but if you lost more than you won, you can’t deduct the excess. Some states allow this deduction, while others don’t. For example, Illinois & Wisconsin do not allow gambling loss deductions at the state level and New Jersey & Michigan allow deductions, but only for professional gamblers.
Fostering Pets + Pet Care Expenses
Another example is pet care expenses. If you foster animals for qualified charities, expenses like pet food, supplies, and veterinary bills can be deducted as charitable contributions. And if you run a business that involves pets, you can often deduct expenses related to your pets. For example, if you’re a dog trainer, dog walker, pet groomer, or run a therapy dog service, the costs of caring for the pets can be deducted as part of your business expenses. This includes veterinary bills, food, training tools, and transportation costs related to the animals.
Swimming Pools
If a treatment is deemed medically necessary by a doctor, it may qualify for a deduction—even if it’s unconventional. For example, swimming pools have been deducted as medical expenses when prescribed for conditions like arthritis or severe mobility issues, as long as the pool is primarily for therapy.
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