7 unusual tax deductions
Purchasing a wig to experiment with a new look is not an allowable deduction, but if you suffered hair loss as a result of a medical condition like cancer or alopecia and you purchase a wig, the IRS allows you to deduct the cost.
"The deduction has been written into the (tax) law," says certified public accountant Lisa Greene-Lewis. "I'm sure it's because someone tried to deduct (the cost) of a wig or hair transplant for cosmetic reasons."
When it comes to deducting the cost of a wig, claiming it as a medical expense associated with illness-related hair loss is the most common scenario.
But enrolled agent Bonnie Lee argues that there might be another reason to deduct the cost of a wig.
"If you’re a performer and you need the wig for an act, it could be claimed as a business expense," she says.
It’s a safe bet that Bozo the Clown is making good use of this deduction.