Tax Deductions You Probably Don’t Know About
May 18, 2018
It can really pay to think outside of the box when it comes to totting up your tax deductions, and believe it or not, there are a few creative ways in which you can save yourself some money. That said, these potential deductions are not easy to qualify for, and you would be wise to consult a tax professional before taking any steps towards creative deductibility.
Listed below are 4 examples of tax deductions you probably don’t know about:
- Tying the knot
Recent surveys have suggested that the average U.S. bride spends around $1,509 on her wedding dress, and the cost of bridesmaids’ dresses and other wedding apparel can amount to more than three times that cost. While some newlyweds may prefer to hang on to their dress for sentimental reasons, did you know that if you donate it - along with any other wedding apparel - to charity, you can make a deductible claim for it?
Be sure to keep hold of the receipt for the donation, and the amount deductible will be the resale price, and this is usually at around half the cost of when you purchased it new. If your dress or bridesmaids’ dresses will simply gather dust after the wedding, then why not donate them, and combine a good deed with a potential tax deduction.
- Owning a working dog
If you own a dog and use it for legitimate purposes related to your business, such as for guarding the premises, then you may be able to qualify for a deduction under business expenses. Creative, but worth looking into.
- Could your prescription save you money?
Medical and dental expenses may not always be straightforward, and you may not always comply with their qualifying guidelines, but provided you have a prescription that was written for you by a qualified medical health physician, then you may be able to deduct for certain things. For example, if you’ve recently become wheelchair bound or disabled and needed to construct ramps at your home, or have been prescribed regular massage or swimming therapies, then these may be deductible if you can prove that they have been recommended or prescribed to you by your GP, or other medical health expert.
- Registering your vehicle could be deductible
In some U.S. states, the fee for registration is based upon the value of the vehicle, and those taxpayers who itemize can deduct that portion of the registration fee. The fee is required to be assessed every year, and as with any creative deductions, it pays to check your information with a tax professional.
For more detailed and up to date guidance on these, and any other potential tax deductions, please make an appointment to see your local tax professional.