| June Walker
Consultant to Indies |
June's Blog
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| What's an Indie? |
Whether you call yourself a
1099 Worker
Sole Proprietor
Freelancer
Subcontractor
Free Agent
or
Self-employed
you are an
independent professional.
The IRS classifies you as an independent contractor.
I call you an indie. |
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Tax Solutions for Creatives |
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4. Expenses in General
5. Office-in-the-Home
6. Auto & Transportation
7. Travel or Transportation
8. Meals & Entertainment
9. Income
10. Taxes
11. Recordkeeping
12. A Final Caution
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| June's Book |
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| Want more expense deductions? |
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The Why of Ways Through the Maze |
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To guide indies to a more simple and secure tax life.
To promote indie-business self-confidence.
To humanize tax issues with glimpses into the lives and concerns of self-employed people.
Each issue will include events and Q&As that come out of real-life situations of indies who have visited my blog or my website.
You'll learn clear and simple solutions to complicated situations about income, expenses, recordkeeping, indie pensions, and being self-employed.
From time to time I'll also announce indie happenings of interest to you.
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| Please tell your colleagues and fellow indies about
Ways Through the Maze |
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Clothes today. Gone tomorrow. |
Hi June, We have a small remodeling business that began in 2002. Typically one man jobs are what we do. Received your book " Tax Solutions" in the mail and now in Chap 13 (no skipping around). My question is, how subject are we to interpretation when it comes to a given deduction i.e. work clothes "clothing must not be suitable for taking the place of your regular clothing in your book you say "... in today's world anything goes..." In my world today's new clothes tomorrow have paint, caulk, oil, etc. etc. etc. on them and therefore are "Work Clothes." Do we win or lose this battle and or is it somewhat of a crap shoot? I will try to apply the spirit of your answer to other deductions. Thank-you. Brad from Shelton, WA Hi Brad, No it's not a crap shoot. It is specific. And you lose. If you can wear them in everyday situations you may not deduct them unless they have your company name or logo on them. Were the IRS to use your reasoning then everyone could deduct all clothes worn to work because they all wear out one way or another. Whether pantyhose or ink on shirts or wine spilled on a silk blouse at a business lunch. What about buying a bunch of T-shirts and pants with the Brad company name on them? The extra cost of cheap printing may be more than saved if you could write off the clothes and their laundering. Best, June |
Undergarments as a business expense? |
June --
I'm from Minneapolis, MN, and I am both a writer and a yoga/writing instructor. I've been an indie for 12 years. My husband is a dancer/actor/performer. We have two questions about business expenses.
As a yoga instructor, I have specific yoga clothes and undergarments that I purchase for teaching. Deductible, right?
And, my husband has a closet of clothes that he keeps for modeling that he doesn't wear any other time, except for auditions and shoots. Deductible?
And, he has regular chiropractic and bodywork for body maintenance. Deductible? He isn't being treated for a specific injury, he is treated for his posture, and to keep his "instrument" in good working order.
Thanks! Josie
Hi Josie,
The rule on clothes: If you can wear them as normal streetwear they are not deductible. Women wear tights as everyday clothes, so there goes that deduction. A sports bra, yes. Regular undergarments, no.
Your husband cannot deduct the clothes he buys for modeling.
Here's another way to look at it. A housewife / mom sends her third child off to school, becomes a realtor and buys an entire business wardrobe because when she's trying to sell a million- dollar house the ripped jeans and tank tops won't do. No clothing deduction.
The freelance writer gets a writing gig for an uppity insurance company and must buy a new suit. No deduction.
A tuxedo or an evening dress for a business awards ceremony are deductible.
Chiropractic and bodywork to keep your guy fit are not deductible. Same would be true for the construction worker who has to stay in shape so he doesn't fall off the scaffold or the waitress who gets a foot massage once a month to enable her to stay on her feet 10 hours a day.
Good try!
-- June |
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Clothing and Make-up as a Business Expense |
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June,
I have a weekly live television segment that I have to buy clothing for as well as stay groomed (waxing, hair, etc..) and buy special makeup for. Are these items tax deductible? I would not be buying all the clothing I've had to purchase this last year if it wasn't for the show.
Thanks...Great blog! Ellen
Hello Ellen,
Wish I had a more preferable answer. Street clothes -- pretty much meaning you could wear them through town and not attract weird looks -- are not deductible. So since you are not playing a clown in a kids' show, no deduction for clothes.
On make-up and hair I look at what is typically spent for non-professionals and then take a deduction for the additional costs. For instance, if professional women typically get their hair cut and colored every six weeks, more often than that would be a business expense.
The same with makeup. If you buy theatre/professional makeup you get a full deduction. If you are buying the makeup most women buy but you're doing full camera makeup each day you will buy and spend a lot more than someone who does light makeup everyday for the office.
Other tax pros may treat this deduction in a different way. In cases where there is no yes/no answer, I choose a position that I would be able to argue comfortably.
Cheers,
June |
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Hi!
I've just discovered your website and I think it's great! I'll be reading it regularly for sure.
If you have a small boutique and you are the owner and naturally you take some of the clothing home to wear it yourself. From a business perspective it's important that you wear your merchandise - it makes it easier to sell it, you need to know if it holds up, you need to know if it fits right. I know you would have to pay use tax on the cost of the merchandise that you wear. But can you deduct the cost as a business expense? And if so what would you call that account? I thought of research and development, but that doesn't sound quite right.
-- Kaylyn
Hello Kaylyn,
The IRS is a stickler on this. The answer is no, you cannot deduct these clothes because you wear them in your everyday activities.
The only way I could see a possible deduction is were you to wear a new item for a specific period of time, keep a written record of when you wore it, what weather you subjected it to, and the result of the test, then you'd be able to take the deduction for that piece of clothing.
Best,
June | |
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