Quick hits
Stat or Quote of the Month:
“The hardest thing in the world to understand is the income tax.”
—Albert Einstein
Tax Tip of the Month
Can I deduct that? As long as it’s “ordinary and necessary.” Here are three of the weirdest cases that have come before the IRS regarding “business expenses”:
Body Oil: Green Light from the IRS
A professional bodybuilder once deducted the cost of body oil. Not lotion. Not “self-care.” Industrial-strength, stage-shine oil used to make muscles glisten under hot lights. The IRS objected. The tax court disagreed. Why did they greenlight it? Because in bodybuilding, oil isn’t vanity — it’s equipment. Without it, judges can’t see muscle definition. Deduction allowed. Somewhere, a CPA quietly poured himself a celebratory drink.
Feral Cats: Green Light from the IRS
Then there’s the junkyard owner who deducted the cost of feeding feral cats. It wasn’t charity. It was pest control. The cats kept rodents away. The rodents damaged inventory. The cats ate the rodents. The IRS argued cats are pets. The court said, “These are employees.” Deduction allowed. Fortunately, no W-2s or 1099s were issued.
Therapy: Green Light from the IRS
Another classic: a Broadway actor deducted therapy sessions. It wasn’t because acting is stressful (although it is). It was because the therapy helped him perform emotionally demanding roles. The court applauded his performance. Mental insight as job maintenance. Deduction allowed. Somewhere, Hamlet nodded in approval.
Now, before you get any ideas, let’s be clear: this does not make your Peloton deductible because it helps you “think better at work,” or that your Labradoodle is now your “Chief Morale Officer.” (He’s a Very Good Boy. But Chief Morale Officer? No.)
But if you’re curious what is deductible, scroll down for our article breaking down what “ordinary and necessary” actually mean.
Wealth Building Tip of the Month
According to Vanguard’s 2025 Retirement Outlook, only about 42% of Americans are currently on track for a comfortable retirement, with boomers, Gen X, and millennials clustering in the low-40s across readiness measures.
Essential Reads
We’re right in the middle of tax season, which means you’re probably thinking about deductions, new legislation, and what actually applies to you.
So, this month we wanted to share two helpful reminders from our blog:
Note 10 Things About the Big Beautiful Bill and what the changes may mean for your tax strategy
Discover The Truth About Write-Offs and what actually qualifies as a deduction
Client Story of the Month
One of the best parts of our work is seeing the impact a good financial partnership can have over time.
Recently, we received a message from a client who wrote to thank the team for our support. Believe us when we say, it’s our privilege.
Behind every business we serve is an owner carrying a lot of responsibility and wearing all the hats. Helping bring clarity to tax and financial decisions is something we take seriously, and we’re grateful for the trust our clients place in us.
Who do you know that needs our services?
We're accepting new clients for...
1. Proactive accounting, tax & advisory
2. Tax resolution
3. Forensic accounting and fraud investigations
4. Financial retirement planning through an integrated Family Office
Who do you know that needs our services? Let us know--we're happy to help!
A Question for You
As you think about your taxes this year, what is one area you wish you had clearer insight on right now?
Until next month,
Your Red Bike Advisors Team
About Red Bike Advisors
We're on a mission to help small business owners simplify, streamline, and save. From compliance and finance & tax strategy to lifetime wealth-building & financial retirement, we bring in clarity, growth, and peace of mind.
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