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Tax Deductible facts

While investigating facts about Tax Deductible Expenses and Tax Deductible Meaning, I found out little known, but curios details like:

When the CEO of discount supermarket chain ALDI was kidnapped, he haggled about his ransom money and claimed the sum as a tax-deductable business expense in court after his release

how much mortgage interest is tax deductible?

If college students work while going to college their employers can count up to $5200 of their pay as tuition reimbursement and make that amount tax deductible for the student. Only a few percent of employers utilize this.

What's tax deductible when buying a house?

In my opinion, it is useful to put together a list of the most interesting details from trusted sources that I've come across answering what's tax deductible for 2018. Here are 50 of the best facts about Tax Deductible Donations and Tax Deductible Medical Expenses I managed to collect.

what's tax deductible?

  1. When 16 year old John Paul Getty III was kidnapped in 1973, his billionaire grandfather refused to pay $17 million ransom. After the kidnappers mailed Getty's ear to a newspaper, his grandfather only agreed to pay $2.2 million because that was the maximum amount that was tax deductible.

  2. Warren Buffet filed his first tax return at age 13 to report income from his paper route, and claimed a $35 deduction for use of his bicycle.

  3. Sex workers in Australia can claim dance lessons, lingerie and costume makeup as tax deductions. Vibrators and fetish equipment can also be claimed, but as depreciating assets.

  4. David Phillips paid just over $3000 for pudding to receive 1.25 million frequent flyer miles. He also received $800 back in tax deductions for donating most of the puddings to charity.

  5. ABBA's performance costumes were vibrant and colourful because if they could wear them while not performing, they wouldn't be tax deductible under Swedish tax law

  6. Ransom payments to a kidnapper are tax-deductible in the United States.

  7. J. Paul Getty refused to pay for his grandson's ransom. When an ear arrived by mail and the kidnappers lowered the sum to $3m instead of $17m, he agreed to pay only $2.2 million - the maximum amount that would be tax deductible. He lent his son the remaining $800.000, at a 4% interest.

  8. If you're a stripper... panties, Bras and breast implants can be tax deductible since they are "business expenses"

  9. The reason for ABBA's often wild and garish costumes was due to Swedish tax law. The cost of the clothes was deductible only if they could not be worn other than for performances.

  10. A man who distrusted technology used carrier pigeons to communicate with his business partner. As such he wrote them off as a tax deduction.

tax deductible facts
What's tax deductible in 2019?

Tax Deductible data charts

For your convenience take a look at Tax Deductible figures with stats and charts presented as graphic.

tax deductible fact data chart about Tax bill impact on a family of four with low deductions
Tax bill impact on a family of four with low deductions

Why is interest tax deductible?

You can easily fact check why are donations tax deductible by examining the linked well-known sources.

I learned that due to a legal loophole, corporations in America can claim their corporate fines for wrongdoing as tax deductions, meaning the taxpayer pays for their misdeeds not the corporations.

Ill-gotten gains from criminal activity must be reported as income for tax purposes and taxpayer may also take deductions for costs relating to criminal activity. SCOTUS ruled that the purpose of the tax code was to tax net income, not punish unlawful behavior. - source

The United States requires its residents to report and pay taxes on illegal income, but allows you to deduct expenses in illegal activity from your taxable income. - source

David Phillips paid just over $3000 for pudding to receive 1.25 million frequent flyer miles. He also received $800 back in tax deductions for donating most of the puddings to charity.

CEO stock options are tax deductible as a business expense in America, meaning that tax payers are subsidizing $7bn in CEO pay each year. - source

When are donations tax deductible?

At age 13 while running a paper delivery service, Warren Buffett claimed his $35 bicycle as a deduction on his tax return

How much of a donation is tax deductible?

ABBA were wearing hotpants, sequined jumpsuits and other costumes to avoid tax. At the time Swedish laws allowed cost of outfits to be deducted against tax.

In 1999, David Phillips aka "The Pudding Guy" earned 1,253,000 frequent flier miles by taking advantage of a Healthy Choice Foods FFM promotion. He purchased 12,150 single pudding cups totaling $3,140 & later donated the cups claiming a tax deduction.

According to IRS rules, hair donations to organizations like Locks of Love are not tax deductible.

If you have a medical condition that doctors say can be improved by swimming, you can deduct your pool expenses from your taxes

Fourteen year old, Warren Buffett filed his first Federal Tax Return in 1944, after earning a gross income of $592.50 on his newspaper route. He paid $7 in taxes after deducting $10 for watch repair and $30 in bike expenses. In today’s money, that’s $8,221.18 in income and $97.13 owed in taxes.

When are legal fees tax deductible?

A drug dealer named Jeffrey Edmondson was charged with drug trafficking, and the IRS audited him for $17,000 in back taxes after failing to declare his income made from drug dealing. He took the matter to Tax Court where he claimed he’d established a home business and wanted to claim deductions.

Gambling wins are taxed at 25% and all gambling losses (up to the amount you won) can be deducted from your taxes as well

Until some time back bribes were legal AND tax deductible in Germany

The 2017 Tax Cuts and Jobs Act removed the right to deduct moving expenses from your tax return, even if you're moving for work.

In 1971, Theo Albrecht (former owner of Aldi and Trader Joe's) was kidnapped and held for ransom. Shortly after being freed, Theo tried claiming the ransom money, equivalent to $2 million USD, as a tax-deductible expense.

How much of student loan interest is tax deductible?

ABBA looked the way they did was because stage costumes had to look really stupid to be tax deductible in Sweden.

BP will be able to deduct $15.3 Billion of the $20.8 Billion Gulf Oil Spill Settlement from federal income tax for this tax year.

In the US you can take tax deductions for costs relating to criminal activity

General Electric paid zero taxes to the U.S. government in 2010 by using a series of deductions to report a $408 million loss in America, even though its international business made $10.8 billion.

Athlete and franchise owner fines are tax-deductible, legal loopholes

In 1943 Americans had to pay their taxes quarterly - they were not deducted from their paychecks

You can deduct state income tax on your federal income tax.

If you are Dutch, and you have to bribe someone in a foreign country, the amount of the bribe is tax deductible to the Dutch version of the IRS

In 2004 the US introduced a tax deduction for captains of whaling boats as part of the Jobs Creation Act. Note: With the exception of captains recognized by the Alaska Eskimo Whaling Commission, whaling in the U.S. is illegal

Many big-time NCAA football and basketball programs require 'donations' in order to buy season tickets. Those fees are tax-deductible.

Taking mortgage interest deduction in the US would mean you cannot take the standard deduction. So, unless you pay significantly higher mortgage interest + taxes than the standard deduction, you don't get a big benefit due to mortgage interest deduction.

Corporations filing taxes in America can deduct the cost of marketing from their taxes

In some countries up until 1996, bribes to public officials were considered tax deductible payments

According to the IRS, "Illegal" immigrants actually pay more than many groups of American citizens because they pay taxes to stay under the radar but do not risk taking deductions (like homeowner's deductions, etc.)

This is our collection of basic interesting facts about Tax Deductible. The fact lists are intended for research in school, for college students or just to feed your brain with new realities. Possible use cases are in quizzes, differences, riddles, homework facts legend, cover facts, and many more. Whatever your case, learn the truth of the matter why is Tax Deductible so important!

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