10 Pet Related Tax Write-Offs You Should Know About
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This isn’t a very nice example but there was once a self-employed woman who worked from her condo. A neighbor had a dog who barked and the condo association had a lot of construction being done, so the lady sued both her neighbor (who had the barking dog) and the condo association (who she blamed for the construction noise). She deducted $26,000 in attorney fees as business expenses since they were “disturbing her work”.
The IRS said the legal fees were personal costs but the tax court approved half of the write-off because she used the condo for 50% of her business (and the IRS had failed to prove that the noise didn’t adversely affect her business). You can read the whole case here.
Just for the record, we suggest noise-cancelling headphones and a talk with the neighbor if this ever happens to you…
