2. Or this woman who deducted costs of horse breeding activities, but she had no horses
This woman claimed she had a horse breeding business and used to deduct costs of this business on her return. The issue was the fact that she had no horses in the year of the IRS audit.
That didn’t stop her from taking horse-related losses on Schedule C of her 2010 return. When the IRS questioned her she said she was looking for another horse and still attended riding events.
Nice try, though.
3. The story of the accountant who deducted the expenses of finding the truth behind his father’s death as business expenses
Sounds like a soap opera, but it happened. A CPA wanted to learn the truth about his father’s death, whether it was a suicide or murder, and spent millions for it. The payments were deducted as business expenses.
But that’s not the craziest part! He did this investigation so that he could write a movie or book about this experience.
4. The couple that made deductions on expenses regarding their daughter’s winnings at beauty pageants
Their daughter began competing in pageants when she was 9. Every year she would make around $1000-$2000, and the money would go into her college savings fund. Her parents were reporting the income on their returns and weren’t shy when it came to taking large write-offs for travel, costumes, and other expenses.
