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A ghost buster and other weird tax deductions people have tried to claim

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2 years ago

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With the April 15 tax deadline closing in, let’s discuss deductions.

I’ve attended my fair share of multilevel marketing presentations where some “expert” claims you can turn a vacation into a deduction by scheduling a quick business meeting.

A trip becomes deductible only if the purpose is primarily business-related. Conducting a minor business meeting while on vacation doesn’t instantly transform what is really a vacation into a business trip, according to the IRS.

I’m always amused by what people try to deduct, so I asked a tax professional about the wackiest things she’s seen. Alison Flores, manager of the Tax Institute at H&R Block, highlighted some of the most creative and oddly legitimate attempts.

A client asked whether he could deduct the cost of different beers he’d taste-tested.

This person had found a way to monetize his peer-review process.

As it turned out, he had a blog and did make self-employment income, “so we had to determine which beer drinking was related to the blogging and which was just personal expenses,” Flores said.

This was a yes for deductibility. It was an ordinary and necessary business expense.

But Flores cautioned recreational beer drinkers not to try this on their tax returns.

“If you are doing it for fun, going out with the guys to drink beer and watch basketball, that’s personal and doesn’t look like a business,” she said. “There is a small fraction of people drinking beer who can deduct their beer.”

The mother of a TikTok star wanted to take a deduction for the toys that her child plays with off-camera because they are occasionally seen in the backdrop of her videos, Flores said.

“The toys looked like personal use,” she said. “It did not seem like a business expense.”

So, it was a no on the toy deduction.

3. Feeding the business mascot

People try to claim the darnedest deductions to reduce their tax bills, especially for business expenses.

In this case, a client who took her dog to work every day wanted to deduct the cost of doggy treats and toys that were kept for it at the office.

Is that a legitimate business expense?

The dog had a positive impact on clients, the person argued.

But, nope. Definitely not a deduction. It’s a pet and a personal expense.

Now, if it were a guard dog, expenses could be counted as a business expense, Flores said.

One client was advised by her doctor to exercise more for general health reasons, Flores said.

Could the cost of her water aerobics class be deducted as a medical expense?

By the way, to qualify for a medical deduction, your expenses have to exceed 7.5 percent of your adjusted gross income for the year.

“Most people don’t get past that threshold, Flores said.

The 7.5 percent threshold has long been a deterrent. But now coupled with the higher and rising standard deduction, this deduction is ruled out for many taxpayers, according to IRS spokesman Eric Smith. In tax year 2017, just over 10 million taxpayers claimed it. By tax year 2021, the most recent year for which data is available, that number had dropped to just under 4 million.

“Those that do have a lot of expenses and could qualify will find our IRS Publication 502 a useful reference,” he said.

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Then there’s the businessman who wanted to take a mileage deduction for his trips to and from the local pub for his afternoon cocktails.

Now, if he were going to the pub to meet a specific client and paying for drinks and a meal, that could be deductible, Flores said.

Because of the “ordinary and necessary” standard that applies to business expenses, details, facts and context matter a lot, Smith said.

“A given expense could be ordinary and necessary for a given taxpayer in one line of business but not in another,” he said.

6. Cost of hiring a ghostbuster

One woman asked whether the service she used to cleanse her home of bad spirits could be expensed as medically necessary.

“It may have made her feel better, but it’s not a medical expense,” Flores said.

7. Upgrading your vehicle

This final one isn’t unusual, but important to note.

Flores said she’s received questions about the medical deduction for upgrading a van for a disabled person.

“For anyone in that situation, it may be unlikely that they think of taking a medical deduction for the upgrade,” she said.

The challenge in many cases is exceeding the 7.5 percent of your adjusted gross income per year for medical expenses.

One strategy is to lump expenses in one year. So you might install a wheelchair lift for the van and make modifications to your home, such as putting in a ramp or renovating a bathroom to make it more accessible.

The deductible cost of renovations (such as installing an elevator) is the difference between the cost of the improvement and the added value to the home. However, many modifications such as widening doorways do not add value and are fully deductible, Flores said.

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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