It’s currently tax season again. Last year at this time I reported on unusual bogus tax deductions that various miscreants tried to get away with. This year I thought I’d provide the opposite: deductions that you might be surprised to discover are legal. Thanks to TurboTax and AARP for the information!

The IRS allows numerous deductions for medical purposes if you can get a written prescription or recommendation from a doctor or other healthcare professional. Recognize however that only the amount of total qualifying medical expenses greater than 7.5% of your adjusted gross income (AGI) is deductible. Here are some of the more unusual examples:

• A parent deducted the cost of a clarinet as a medical expense for her child after an orthodontist argued that playing one helps with the child’s overbite. And in addition to the instrument cost, the IRS also allowed a medical deduction for his music lessons.
• Does someone in your family have a medical condition that would benefit from a swimming regimen? The IRS once allowed the deduction of the cost of a pool installation for an arthritis sufferer. If you live in an apartment and have a similar ailment, you might instead be able to deduct the cost of membership at the local YMCA if it has a pool.
• Trying to quit smoking? The IRS has allowed the cost of patches, other aids, and even paid cessation programs as a medical deduction.
• Want to improve your health? Drug or program expenses designed to reduce your weight or your cholesterol might qualify for a deduction.
• Does your child have a learning disability? You can deduct the cost of a specialized tutor.

There are also many unusual deductions you can claim if you operate a business and can offset the costs against income. For example:

• If you use your dog to protect your business property as a guard dog, you may be able to deduct some portion of its care expenses such as food and harnesses. The same goes for cats if used to keep the rat population down, especially at food-related businesses.
• If you’re a professional weightlifter you can deduct the cost of body oils.
• If your business has suffered a ransomware attack you can get a deduction for your resultant losses. But you will need to prove how much the cyberattack cost you. (It’s probably not a good idea to keep those records on the same computers that had become locked out).
• An exotic dancer named Chesty Love (I’m not making this up) was able to depreciate the cost of her breast implants on her taxes.

When in doubt, it’s always a good idea to consult a tax professional. And with the layoffs buffeting the IRS right now, better plan on a pretty lengthy wait before reaching anybody there by phone.

(This information does not constitute investment, legal or tax advice and should not be used as a substitute for the advice of a professional legal or tax advisor.  Any tax statements contained herein are not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Taxpayers should always seek advice based on their own particular circumstances from an independent tax advisor.  Perigon and its directors, officers, agents and employees are not permitted to render tax or legal advice. Perigon is a registered investment adviser. More information about the firm can be found in its Form ADV Part 2, which is available upon request by calling 877-977-2555 or by emailing compliance@perigonwealth.com.)