Golf Carts to Island Divorces: 10 Notorious Tax Loopholes

By Karen Fickes and Warren Joseph of Bloomberg BNA - 2012-06-20T21:55:57Z

Photograph by Luc Hautecoeur/Stone/Getty Images

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Spouse's travel

Taxpayers were frequently able to deduct foreign and convention travel of their spouses on the theory that the spouses were required to engage in social events and cultivate good will for the business. Corporations frequently obliged their executives by making this company policy. In 1993, the Internal Revenue Code was amended to prohibit such deductions unless the spouse is also an employee, the travel has bona fide business purposes and the expenses are otherwise deductible.