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You Won't Believe These Real IRS Deduction Stories

By
Education & Training with Number Cruncher LLC

Happy Friday.

People get very creative during tax season.

After years of working in taxes, I can confidently say there are two things you should never underestimate:

  1. The complexity of the tax code
  2. Humanity’s confidence in calling random things “business expenses.”

Some deductions are perfectly legitimate.  Others make IRS auditors quietly stare into the distance while reconsidering their career choices.

Here are a few real examples of unusual deductions people actually tried to claim.

The “Pimped Out” Amish Buggy

An Amish businessman attempted to deduct his buggy as a business expense.  But the accountant became suspicious after noticing the upgrades:

Velvet interior.
Hydraulic brakes.
Tinted windows.
A speedometer.

At some point, the buggy stopped looking like transportation and started looking like a 1998 limousine.  The IRS allowed some business use but disallowed many of the luxury upgrades.  Apparently, even horse-and-buggy travel has limits on what counts as “ordinary and necessary.”

The “Freakishly Large” Business Asset

In one of the most famous unusual tax cases ever, exotic dancer Chesty Love successfully deducted her breast augmentation surgery as a business expense.

Why?

Because the court ruled the implants were so unusually large that they were used strictly as part of her performance and created personal hardship outside of work.  In tax court language, they were considered a “business prop.”  Somewhere an IRS auditor definitely had to pause and rethink their life choices while writing that decision.

The IRS-Approved Body Oil

A professional bodybuilder successfully deducted body oil used during competitions because it enhanced muscle definition under stage lighting.  But when he tried deducting buffalo meat and specialty vitamins, the IRS said no.  Apparently there is a line between “professional competition expense” and “you just really like protein.”

The Cat Employee

One junkyard owner successfully deducted cat food because the cats worked full-time controlling rats and pests around the property.  Meanwhile, another taxpayer unsuccessfully attempted to deduct expenses for a pet goldfish as an emotional support animal.  The IRS was apparently unwilling to recognize emotional support goldfish as a qualifying business expense.  

The Musical Overbite

Back in 1962, the IRS allowed parents to deduct the cost of a clarinet and music lessons as a medical expense.

Why?

An orthodontist recommended playing the clarinet to help correct the child’s severe overbite.  Which means somewhere in America there was a kid practicing scales while unknowingly participating in one of the strangest tax deductions in history.

The Pizza Delivery Luxury Car

One taxpayer claimed a luxury vehicle was necessary to maintain a professional image as a pizza delivery driver.  The IRS auditor decided to investigate further.  Turns out the pizza company delivered entirely by bicycle.  That deduction crashed faster than a teenager learning stick shift.

The Tax-Deductible Arsonist

And finally…

In perhaps the boldest example of “creative accounting,” one struggling business owner attempted to deduct money paid to an arsonist hired to burn down the business.  The payment was labeled as a “consulting fee.”  That deduction was denied immediately, which probably surprised absolutely no one except maybe the taxpayer.  

Many people genuinely don’t understand what qualifies as a legitimate tax deduction. They hear phrases like “write it off” and assume almost anything connected to work automatically counts. Unfortunately, the IRS has very specific rules about what is considered ordinary, necessary, and properly documented.  And when taxpayers get too creative, things can go sideways quickly.

That’s often when people end up receiving IRS notices, audit letters, or questions they never expected.

And if you ever find yourself wondering whether something is deductible, it’s probably a good idea to ask before claiming your emotional support goldfish. Because not every “business expense” survives an IRS audit.

Now I’m curious…

What’s the funniest or strangest deduction you’ve ever heard someone try to claim?

 

Comments(23)

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Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Oh my word! These are insane. The lengths some will go to is incredible.

May 29, 2026 12:52 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Candy:

This was certainly very entertaining, with some great examples of tax payer ingenuity and creativity. I bet the IRS has great stories to tell.

Jeff

May 29, 2026 01:06 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Candy Stevens, EA ,

Wow...these are some interesting deductions some have tried to take! I can see why not every “business expense” survives an IRS audit. LOL!

May 29, 2026 03:47 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

This is an example of people being willing to go for it. Regards to what will be considered a deduction and  the worst that can happen is that you can learn what isn’t one. Great idea for a post!

May 29, 2026 09:12 PM
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

People can get real creative when it comes to their taxes.... but the auditors can tell between a biography and fiction!  Fun Post! 

May 30, 2026 01:10 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Oh my gosh, those stories are great. People try all sorts of things!!

May 30, 2026 05:17 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Those are funny!  I can't blame them for trying, though, haha.  The government takes too much anyway.  If they actually did well with it, that would be one thing, but since most of it ends up in the politicians' pockets, it frustrates me, haha.

May 30, 2026 09:51 AM
Kathleen Daniels, Probate & Trust Real Estate Svcs.
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Hello Candy Stevens, EA - thank you for sharing some bizarre attempts to tax-deduct this and that and boob jobs.  

How do we account for the FREE boob jobs the Gov-mint is providing for transgenders? 
Now that is a twist - is it not? 

Congratulations on the Feature!  Keep the posts coming. 

May 30, 2026 10:24 AM
Lew Corcoran
Better Living Real Estate, LLC - East Bridgewater, MA
Expert guidance. Exceptional results.

What a read this was, Candy Stevens, EA, and thanks for sharing it. The stories had me shaking my head and laughing at the same time, and they still managed to sneak in some solid reminders about how wild tax season can get. Always good to learn something new while getting a grin out of it.

May 30, 2026 02:14 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hello Nina Hollander, Broker, I never thought of a goldfish as an emotional support animal!  I guess to each his own!

Have a great day!

Jun 02, 2026 03:09 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hello Sam Shueh I am very glad that you didn't go through with using abnormal tax deductions!

Have a grand day!

Jun 02, 2026 03:12 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hello Dr. Paula McDonald .  Some people have very creative thinking when it comes to tax deductions for sure!

Have a wonderful day!

Jun 02, 2026 03:14 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hello Jeff Dowler, CRS .  I would love to hear IRS stories of made-up tax deductions!  But at the same time, I believe it would give people ideas!

Enjoy your day!

Jun 02, 2026 03:15 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Good Afternoon Dorie Dillard Austin TX .  And these are the deductions we know about.  I am sure there are a whole bunch of abnormal deductions on tax returns that are not caught because they don't get audited!

 

Have a Happy Day!

Jun 02, 2026 03:16 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hello Laura Cerrano . That would be great if not being able to use the deduction was the worst that could happen.  If the deduction is removed, it will increase taxable income.   Penalties and interest will be assessed as well.  

Have an awesome day!

Jun 02, 2026 03:19 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hello Debra Leisek.  I am sure IRS auditors have seen all sorts of off-the-wall tax deductions!

Have a fabulous day!

Jun 02, 2026 03:21 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hi Kat Palmiotti .  Some of the deductions made me laugh.  Some of them I am surprised that they were allowed!

Have a stupendious day!

Jun 02, 2026 03:22 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hello Brian England . You are not alone in your frustrations about how our tax money is used!  If we were all to rise up in a revolt, maybe something would change. 

Make it a great day! 

 

Jun 02, 2026 03:23 PM
Brian England

Nah, they would just shoot us down Candy Stevens, EA and keep filling their pockets, haha.

Jun 02, 2026 06:25 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hi Kathleen Daniels, Probate & Trust Real Estate Svcs.  I didn't know about the free boob jobs for transgender people.  🤔

Have a great day!

Jun 02, 2026 03:24 PM
Candy Stevens, EA
Number Cruncher LLC - Overton, NV
Helping Clients Resolve IRS Problems

Hello Lew Corcoran .  Some of those were pretty funny.  I am glad that I was able to make you laugh.  We all need to laugh more.

Have a Happy Day!

Jun 02, 2026 03:25 PM