Deductible Business Exp – work clothes to wear while working at home? đ
Haha NO they are not!
{I hope that wasnât a trick question.}
Money Monday- letâs talk deductible expenses. You donât need to go another year wondering!
Long story short- business expenses are those âwholly and exclusively incurred in the production of of income.â
Itâs true that you can deduct the amount you spend on work clothes BUT this can get a little confusing if you are like me and work at home.
Your work clothes must meet the following requirements before you can deduct them on your Schedule C:
1ď¸âŁ You just wear them as a condition of your employment.
2ď¸âŁ The clothes cannot be suitable for everyday wear.
Busted! I totally live in my athletic wear and wear it everywhere!
Okay, so mine arenât deductible but are yours?
For deductible business clothes…
đ Think safety shoes/boots, safety glasses, hard hats, work gloves
đ Think uniforms that are distinctive to the business with a company logo but NOT the khaki pants that are worn with it
đ Think promotional attire! This includes the clothing as well as the cost to add your logo.
đ Think costumes, many musicians and entertainers can deduct their theatrical clothing if itâs not suitable for everyday wear.
These are all deductible!
A Las Vegas showgirl was audited after claiming her costumes as tax deductions.
She was told that because she could wear them outside of performances they werenât deductible.
To prove her point she came to the audit in a costume and couldnât sit down due to the shape, and won!
I know it stinks- I donât make the rules I just want you to know them!
As you scale to multiple six figues and beyondâŚ.Make sure your books are legit and youâre not taking deductions the IRS wonât allow.
Questions about this? Send me a message! đ˛
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