I was in a business that had legitament deductions and some deductions were probably OK according to the tax preparers.
We looked at the amounts that we could gain, compared to the amount it would cost to defend our claims.
We decided that: If it weren't clearly deductable with 100% success that we would not claim it.
For example a fax machine... it was obvioustha we had no personal use for a fax machine.
Labratory supplies... no problem.
If we had a boat that would be used for testing propellers for upto 8 hours a week but MIGHT be used by any employee on the weekend... we didn't claim the boat.
We could buy a lathe, a mill, and other shop tools... to be used a few weeks at a time every 3 or 4 months... the crew might use the equipment for an undocumented personal job as needed.... we decided that we would incur risk to claim it. (We ended up renting a machine shop on their open 3rd shift... paid for the exact usage and claimed it on our taxes... there was no question that it was used for our business)
Our rule of thumb... be absolutely honest, document, verify ... don't waste time and money trying to get away with fraud or even the appearence of some thing that might be questionable.
It worked... fair and square.
