H&R Block (ticker: HRB, exchange: New York Stock Exchange (.N))
News Release -
Tax Deductions for Clowns, Scrap Yard Owners, Hot Tubbers and More; H&R Block Helps Taxpayers Find Unusual Ways to ``Deduct-a-Buck''
KANSAS CITY, Mo.--(BUSINESS WIRE)--March 3, 2006-- Clowns deducting travel expenses? Scrap yard owners deducting cat
food? How about a deduction for your hot tub as a medical expense?
Every year, taxpayers test the limits of the Internal Revenue Service
(IRS). Now, H&R Block is giving taxpayers a new way to test their
savvy of the unique and obscure in the tax code, win prizes along the
way and maybe deduct a few extra bucks that they may never have
The company has introduced the Deduct-a-Buck online game hosted by
fictional character Max Refund. This dynamic, tongue-in-cheek game,
with the look and feel of a 70's television quiz show, is located at
www.deductabuck.com and will run through April 17, 2006. Prizes
include Blockbuster(R) gift cards, free TaxCut Online Premium tax
programs, GameStop(R) gift cards and a Dell(R) XPS Notebook Computer
The www.deductabuck.com site from H&R Block provides not only a
look at some of the strangest deductions on record, but also connects
people to the more serious side of the tax season -- the need for real
advice and sound tax preparation, because not all deduction hits and
misses are laughing matters. In fact, the need for advice is greater
than ever before as a wide range of commonly missed deductions
potentially impact the bottom-line for taxpayers who don't know their
options and miss deduction opportunities.
Nationwide, for example, 4.1 million taxpayers miss taking
education credits and deductions, and 7.3 million taxpayers miss
claiming the Earned Income Tax Credit, which can put as much as $4,400
into eligible taxpayers' pockets. For more information, visit
www.taxcut.com or www.hrblock.com , file early and make sure you're
taking advantage of every eligible deduction - no matter how wacky
they may seem. Or visit one of the more than 11,000 retail offices
nationwide for advice.
After 50 years and more than 400 million tax returns, H&R Block
tax professionals have seen and heard it all ... and then some.
Between its 70,000 tax professionals and its array of TaxCut Online
and TaxCut Software-based tax preparation products, H&R Block claimed
more than $29 billion in deductions and credits for its clients last
year. Yet, every year Block sees more than its share of taxpayers'
"creative" efforts to move the Internal Revenue Service (IRS)
While some of the deduction attempts may seem bizarre and just
plain silly -- a number of these unusual deduction attempts have
actually made the grade with the IRS. Here are some more IRS classics
-- those that were denied, and stranger still, those that were
A Swing and a Miss
Nice for your skin, but not deductible as a medical expense.
Jefferson, Earl v. U.S., (1973, DC GA) 32 AFTR 2d 73-6053
Not deductible as medical expense to improve varicose vein problem.
Adler, Irving v. Com., (1964, CA9) 13 AFTR 2d 1175.
Not allowed as a business deduction for an actor (to enable him to
enunciate without a hiss).
Sparkman, Edward v. Com., (1940, CA9) 25 AFTR 285
Dog boarding costs:
Denied as a business (travel) expense while the taxpayer was away from
Baratelle, Kenneth Andrew, (2000) TC Memo 2000-359
Not deductible as "preventive medicine."
Daniels, Fred, (1963) 41 TC 324
Not allowed as medical deduction (even when done by professional
Rev Rul 82-111
A professional bodybuilder was denied a deduction for high protein
buffalo meat and protein shakes. However, see the "posing oil" item
Wheir, Corey L. v. Comm. (T.C. Summ. Op. 2004-117)
He Shoots ... He Scores!
Although deductions were denied for special foods (see "buffalo meat
above), a business deduction was allowed for the bodybuilder's
expenses for posing oil.
Wheir, Corey L. v. Comm. (T.C. Summ. Op. 2004-117)
Boarding school in Arizona:
Travel, room & board were allowed as medical expenses for sending a
young child with respiratory problems to a boarding school in Arizona.
Stringham, L. Keever, (1949) 12 TC 580
Allowed as a business expense for an exotic dancer - Size 56FF.
Allowed as a business expense to attract wild cats to deter snakes
from a scrap yard.
Samuel T. Seawright, Et Ux., (2001) 117 TC No. 24
Deduction allowed (for the clarinet, too) to help a child's overbite.
Rev Rul 62-210
Moving your pets:
Moving expense deduction allowed for the cost of moving Fido to his
Rev Rul 66-305
About H&R Block Digital Tax Solutions
H&R Block Digital Tax Solutions develops and publishes consumer
financial and personal productivity software and online programs for
the leader in tax preparation and services, H&R Block. titles include
the H&R Block TaxCut family of products -- TaxCut Standard, Deluxe,
and Premium -- as well as the family of online tax preparation
products found at hrblock.com and taxcut.com.
About H&R Block
H&R Block, Inc. is a diversified company with subsidiaries that
deliver tax services and financial advice, investment and mortgage
services, and business accounting and consulting services. The
company's mission is to help clients achieve their tax and financial
objectives by serving as their tax and financial partner. Additional
information is available on the company's Web site at www.hrblock.com.
CONTACT: H&R Block
Denise Sposato, 816-932-4909
Jan Rasmussen, 816-512-2238
SOURCE: H&R Block