Did you know these Tax laws in US actually exist? www.aotax.com 703-584-5533
Did you know these Tax laws in US actually exist? The tax season is around the corner and I am sure most of you would be in a frenzy to file your taxes at the earliest. Well, good for you. But what if I tell you that you might have missed out on some tax exemptions or deductions while preparing your taxes? Most Americans consider that the tax laws are a bit complicated and, thus, resort to professionals’ help for preparing and filing their tax returns. Are the laws complicated? They are a bit, yes. Moreover, there are some strange tax laws which most of us are not aware of.
Did you know these Tax laws in US actually exist? Here is a list of such weird federal tax laws. Find out if you have ever heard about them: • Allowance for clay miners • Allowance for shell and rock miners • Body building, anyone? • It is time to pursue your 'artistic' skills • Breast implants are depreciable
Did you know these Tax laws in US actually exist? • Allowance for clay miners Sagger clay is used in pottery. People who mine this clay get a 14% federal depletion allowance. Quite generous, don’t you think? However, there is a catch to this law. If the clay gets deposited in sewer pipes then the allowance is reduced to 7.5%. • Allowance for shell and rock miners If you are engaged in extracting oyster shells, clam shells and spodumene mineral, you can also claim the federal depletion allowance of 14%.
Did you know these Tax laws in US actually exist? • Body building, anyone? Body building can be a lucrative professional choice as the special oils used in the preparation of a body-building competitions are eligible for tax exemption. You can deduct the cost of these special oils from your taxable income. However, buffalo meat and wheat-grass shots do not qualify for tax exemption and their expenses are included in your taxable income. • It is time to pursue your 'artistic' skills If you are a performing artist and fulfill some employment conditions, you can claim deductions for expenses incurred during such employment. The employment conditions stipulate that you should be employed by a minimum of 2 employers each paying at least $200, the expenses related to your job should be more than 10% of the income generated from the same job and your adjusted gross income should not be higher than $16,000. If you fulfill these conditions, enjoy tax exemptions on your job-related expenses.
Did you know these Tax laws in US actually exist? • Breast implants are depreciable This one takes the cake! If your breast implants are requirement in your chosen field of work, they are considered as a stage prop. Since the prop is for your business, it comes under the category of business assets which are depreciable over time.
Did you know these Tax laws in US actually exist? • Some 'weird' state tax laws Yes, even the US states are not far behind in weird tax exemptions and deductions. Here are some weird tax laws prevalent across some popular US states. o New York Bagels – if you are in New York and love your bagels, decide how you want to buy them to avoid tax. An uncut bagel is tax exempt. However, if you buy your bagel any other way (like sliced or creamed) you have to part with 8 cents in taxes. o California and its fruits – buying fruits from kiosks or fruit stalls attracts a 33% tax while buying fruits from the grocery store does not. Strange, isn’t it? o Arkansas and being natural – if you are in Arkansas and get your body pierced, tattooed or underwent electrolysis, you would have to pay a 6% extra tax. Being natural has its perks, doesn’t it? o Alabama and Nevada and the playing cards dilemma – as gambling is legal in Nevada, the state gifts you a free deck of playing cards when each return is filed. However, in Alabama, the state charges a 10% on decks with 54 or less playing cards.
Did you know these Tax laws in US actually exist? With these weird tax laws, it is no doubt that Americans find filing their taxes difficult. With both federal and state tax laws having weird tax deductions or charges, it sometimes become difficult to figure out whether you can save tax or have to file an extra tax. The next time you file your taxes, look out for these strange tax deductions and save on your tax outgo.
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