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Tax laws change rapidly from year to year, making planning difficult. What was a deductible expense last year may be gone this year.
However, the US tax code includes several specific deductions that may seem utterly ridiculous but can legitimately save you some money.
So, if you’re struggling with your tax returns and trying to find some extra deductions to boost your refund or reduce how much you owe, check out these 12 bizarre but legal tax loopholes that could save you big.
Ransomware
Ransomware is a malicious computer program that encrypts important business information. The hackers then demand money for a key to unlock the data. Ransomware attacks are usually aimed at small businesses, and if you’re a victim, you can deduct the cost as a business expense as long as you can prove you were a victim.
Animals
If you have a guard dog that protects your business location, pet care expenses can be deducted as a business expense. You can also deduct the cost of pet care if you have a cat or dog that helps keep your business pest-free.
Home Swimming Pool
If you can prove your new swimming pool is a medical expense, you may be able to claim the cost as a tax deduction. Your doctor will need to provide documentation that the pool is a medical necessity, and the expense must be over 7.5% of your adjusted income for the year.
15 Days of Rental Income
You can rent your home for up to 15 days without paying any tax on the rental income. However, you do have to pay taxes on any rental income that exceeds 15 days.
DNA Testing Kits
If you buy a health and ancestry kit from 23 and Me, the IRS says that part of the cost can be deducted as a medical expense. You have to buy the DNA kit and the extra genetic testing to take advantage of the tax break.
Body Oil
Most of us can’t deduct the cost of body oil, no matter how expensive it is or how great it smells and makes you feel. But, if you’re a professional weight lifter, you’re in luck because body oil is a legitimate business expense for bodybuilders.
Clarinet Lessons
This might be a stretch, but in 1962, an orthodontist stated that playing the clarinet helps to correct an overbite. Based on this information, at least one parent has deducted the cost of clarinet lessons as a medical expense. Of course, you’d need an orthodontist to say that the lessons were medically necessary.
Cosmetic Surgery
This is another one that would be difficult to qualify for. But in the 1990s, a dancer claimed her breast implants as a tax deduction because they were necessary for her to make money, and the courts agreed.
Gambling Deductions
If you win on a gambling trip, you’ll probably need to pay taxes on the money you won. But to help offset the expense, you may deduct any losses from the same gambling trip before calculating the taxes on your winnings. So, if you place bets, keep a tab of all your wins and losses.
Unpaid Loans to Family or Friends
If you loan someone money and they don’t pay it back, you may be able to deduct the cost of the loan from your taxes. This loophole was meant for businesses, but anyone can deduct a bad debt.
Charitable Deer Meat (South Carolina)
If you live in South Carolina and donate deer meat to charity, you can qualify for a tax credit. However, you must have a license to operate as a butcher, meatpacker, or processing plant and donate part of a contract with a nonprofit that supplies food to the needy.
Landscaping
If you run a business out of your home and can prove that a landscaped lawn is necessary for you, deduct your lawn care and landscaping expenses as tax deductions.
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