Recreational drugs
Recreational drugs

Certain drugs qualify as legitimate medical deductions. But when they're recreational drugs, like say cocaine or ecstasy, the expenses are a little harder to slip by the IRS.

Dave Spaulding, an enrolled agent at Janover LLC, a financial planning firm, said clients who were in a rock band actually tried to deduct an item labeled "drugs" as "travel & entertainment" expenses.

The total cost of the "drugs" was in the high five-figures, and the band didn't even try to disguise them as prescription or medical drugs.

"The band's bookkeeper had concluded that the cost of recreational drugs was necessary and ordinary," he said. "Apart from admitting to possession of illegal drugs, the IRS would strongly differ with their tax position."

Needless to say, Spaulding's firm removed the deduction from the band's tax form.


By Blake Ellis @CNNMoney - Last updated March 09 2012: 12:41 PM ET
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