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OF BUFFALO MEAT AND BODY OIL

September 01, 2004

Sometimes it can be hard to say no to a client who wants to take a deduction. Some taxpayers can be very persuasive:

   In addition to his work as a 
   boilermaker, petitioner was also a 
   professional bodybuilder. In this 
   activity, petitioner lifted weights, 
   posed to display his muscular 
   finesse, trained other bodybuilders,
   and gave seminars. Some of his 
   poses were published in bodybuilding 
   publications. Petitioner won awards 
   and received at least one 
   endorsement from a supplement 
   manufacturer for which he received 
   supplements valued at $100 per 
   month.

Did I say you can't take that deduction? I meant, of course you can take that deduction. Please put me down so I can add the deduction to your schedule C.

I understand, sir. You need to eat three pounds of buffalo meat each day. Yes, it has more protein than other meat. Yes, I know that it is an important part of what gives you the strength to press me against the ceiling like you are doing. Yes, I know you wouldn't eat three pounds of buffalo meat each day if it weren't for your bodybuilding business. How much of it to you want to deduct? All of it? Done.

Oh, the posing oils? Absolutely deductible! Yes, that pose looks great. You could do that holding two more of me? Wow, that's just amazing!

   Included in the disallowed deductions 
   labeled as "Supplements" were the 
   costs of bison (buffalo) meat, which
   petitioner consumed daily, year round,
   at the rate of 3 pounds per day. 
   Petitioner contends he consumed 
   the meat for muscle development 
   because the protein levels in buffalo 
   are much higher than those in beef 
   or other meat products. 

Do you have any recepes for buffalo meat? Oh, you don't cook it. I see.

   In addition, 
   petitioner also consumed enormous 
   quantities of vitamins and minerals 
   through various types of "shakes" 
   containing ingredients to enhance 
   strength and muscle development. 
   Petitioner also used a variety of 
   other products that were not ingested
   but were simply sprayed on or 
   massaged into the skin to enhance 
   his appearance. One of these products
    was called ProTan Muscle Juice 
   Professional Posing Oil and, according 
   to instructions, was applied "prior 
   to pumping up backstage for optimum 
   effects." Another similar product 
   called Blow Out was applied to the 
   body 5 minutes before a workout. 
   Still another product was massaged 
   over the body several hours before 
   a posing to provide a suntan brown 
   color or a deep tan to the body. 

Been getting some sun? You look like it? Oh, you apply that color. Sure, we can deduct that!

   Most of these products could not be 
   purchased in local health food stores 
   but were purchased solely through 
   advertisements in bodybuilding 
   publications. Respondent, in the 
   notice of deficiency, disallowed 
   the deductions claimed for the 
   described items on the ground that, 
   under section 262, these expenses 
   were personal because the products 
   described could be consumed by 
   bodybuilders and nonbodybuilders 
   as well.

No, sir, I can't guarantee the IRS will allow the deduction. They frown on deducting food. Oh, I believe you eat the vitamins for business. Ab-solutely! But the tax law doesn't like you to deduct food, even for business.

   With respect to petitioner's 
   consumption of buffalo meat, 
   respondent has not challenged 
   petitioner's argument that the 
   meat developed proteins and strength 
   that enhanced his bodily physique. 
   However, there is no doubt that 
   buffalo meat is also consumed as 
   food by nonbodybuilders, albeit not 
   with the regularity and in the 
   quantities consumed by petitioner. 
   On balance, the Court holds that 
   petitioner's expenses for buffalo 
   meat are inherently personal and 
   are not deductible under section 262...
   The shake drinks consumed by petitioner 
   also, in the Court's view, fall in 
   this same category, and respondent 
   is also sustained as to those 
   disallowed expenses. Such items may 
   well be consumed not only by 
   bodybuilders but also by others 
   interested in their health and 
   physical appearance. 

You're right, sir, it's judicial tyranny!

   As noted above, petitioner also 
   used a variety of other products that
   were not ingested but were physically
   applied to the body primarily to 
   enhance his appearance as a 
   professional bodybuilder. Even 
   though no evidence was presented 
   to establish that those products 
   were used by nonprofessional 
   bodybuilders, the Court recognizes 
   that such products could be and might 
   in fact be used by nonprofessionals 
   interested in their physical appearance. 

No, I'm not interested in my physical appearance, thank you. Remember, I'm an accountant.

   The evidence presented indicates 
   that these products were marketed 
   only through bodybuilding publications
   and were not generally for sale 
   through normal marketing outlets...
   As to these products, while there 
   may be some doubt, the Court concludes,
   on balance, that the scale tips 
   ever so slightly in favor of 
   petitioner. Petitioner, therefore, 
   is allowed a deduction for this 
   portion of the expenses.

Well, we got some of the deductions, anyway. As you say in your business, no pain, no gain! No, I don't need any pain, thank you. A bill? Oh, forget it. This one's my treat!

Cite: Corey L Wheir, T.C. Summary Opinion 2004-117 (pdf format)

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