A Playboy subscription. This expense was actually put through the scrutiny of an audit, says Merrill. It was a legitimate expense for the taxpayer, who was a photographer who did boudoir photography. Clothing and shoes are the ones that top the list of creative deductions Andrew G. Poulos, principal of Atlanta-based Poulos Accounting & Consulting, Inc., sees clients try to take. Other crazy deductions I have seen include expensive gifts to their spouse, which include jewelry, lavish trips and even lingerie as a gift. Also read: You can get a tax break on all of these home improvements Meals and entertainment deductions can trigger an audit if the business owner isnt careful . In my experience, the most abused expense is meals and entertainment, according to Williams. Clients are under the wrong impression that its a free for all. I once had a client try to deduct their daily breakfast because he happened to be speaking on the phone with a customer or sitting at his desk completing paperwork. Folasade Ayegbusi, founder of Accountingwithfolasade.com, says shes seen a business owner try to deduct the occasional alcohol run under meals and entertainment. Now, if the doctor prescribed you alcohol, then yes, we can deduct it, she says.
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