When Can Work Clothes be Legally Written Off? (100% Tax-Free)
Vložit
- čas přidán 11. 02. 2024
- Learn how to legally write off work clothing for your business, what can and can’t be written off, and what are the deciding factors to determine whether certain clothing is a business expense. Knowing this can help you leverage tax law and use it to your advantage when wanting to save on taxes for your business.
🔥 Want to become a client of Jasmine's? Accounting, IRS Tax Resolution, and Tax Leverage: www.taxleverage.com
🔥 Accountant looking to grow your firm? See how Jasmine can help: taxleverage.com/welcome
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
ABOUT JASMINE DILUCCI, JD, CPA, EA
Jasmine DiLucci has specialized in tax since high school when she first became licensed to represent taxpayers before the IRS.
Now as a tax attorney and CPA, she works with individuals and business owners across the nation to resolve IRS tax issues, streamline accounting, and minimize tax for business owners.
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
Disclaimer: This information on this channel is for educational purposes only and does not constitute professional legal or tax advice.
# #jasminedilucci
![Everyday Tax Write Offs for Small Businesses! [24 hr Challenge]](http://i.ytimg.com/vi/vtbh6QJBqzs/mqdefault.jpg)
![How to Write Off 100% of Your Car as a Business [STEP-BY-STEP] | Vehicle Tax Deduction | Sec. 179](/img/n.gif)
By far the best tax experts in CZcams. But either the CZcams algorithm is failing or people like to be fed a narrative that aligns with their hopes
Not a lot of views for all the subscriptions.
@@Applecompuserbc most people do taxes once a year. Or the idea of this all is great, but most just won’t follow through
Fellow attorney here. Only tax channel I can tolerate hearing from.
love it!
Great video! Thank you
Enjoy your work, and appreciate your expertise.
Thank you!
Beautiful, intelligent and graceful.
What about construction field? Carpenter pants, steel toe boots, etc?
You are incredible! Thanks...
Thanks!
Are your services available for the state of Florida for business and personal?
Yes I work with people in all states - taxleverage.com
well good to know...I would risk just writing it all off in the GL line and let the CPA decide.
What most people do! I will say that when the audit rolls around the CPA will be looking at you like "well...you told me it was uniforms" 😆
Could close that bare your company's logo be written off as advertising if you give them away to clients for free?
The taxpayers tend to win the deduction where the clothing had a logo. I wouldn't expect the same result if the logo were purposefully hidden on a luxury item like a louis vuitton bag with a logo on the inner seam. Clothing given to clients for free would fall under a gift and those have limitations of $25 per person to be deductible.
I've worked at a company for 10 years and I purchased thousands of dollars in tools over the years. Can I write it off, tax deduction? I have receipts. Should my employer reimburse me?
Hey Jasmine, can I throw you a curveball? My most recent purchases were velcro patches with the company logo. I did it to be able to swap between different clothes and backpacks. The patches should be deductible but not any clothes, right?
So scrubs are deductible since it is not suitable for personal use and it is required for the job.
Yes scrubs are not considered suitable for personal use. The biggest reason Tax Court will step in and add tests like this one is to avoid abuse of the tax law, not actually to prevent deducting the purchase of clothes that are necessary for the job.
The third test, as written, doesn't make sense: "the clothing is not so work personally" ??
Can't be used for personal use. Listen. She explained it.
haha thanks for catching the typo - "worn" not "work" - it cannot be worn personally
What about clothes with logo Large and used as advertising?
Yes
Realistically though, how would the IRS be able to prove that you did or didn't follow the law correctly? You could buy a piece of clothing with a logo but then lets say its stained and you get rid of it. If burden of proof is on the tax payer then how would you prove it was not suitable for personal use.
Receipts
If its the fashion of a clothing company making the video the clothes are already listed elsewhere in taxes.
If you make videos and have costumes/stock clothes you can write them off. IF YOU CANT USE THEM. Clothing that is obviously to small or large for you that only models use durring shoots would be deductible.
There is a whole system of renting or borrowing clothing for videos. The IRS knows this. Going in and saying you only hire models with a certain look and size rhat match the owners and then claiming it required you buy the clothes will get you slapped hard and with intent by the IRS.
The first thing to presume is that the agent doing your in person audit has had at least 4 hours of time to search the internet on your industry.
Each line of your 1040 will be searched online.
I spend 15min researching production clothing online do you think you convince me it passes the rules?
Hell, I spent the 90s in underground clubs where women I knew would show up wearing clothe that were just black electrical tape. Im a 6' tall man and had a turtleneck one piece pull over jacket made of clear vynal made inspired by the Blade Runner shoit of the woman crashing through plate glass windows.
Now convince me you cant wears something 2 sizes smaller or larger than you made for the oposite gender to go to a superbowl party.
How can we ever know what is legal or not legal? Lawyers will always feed you a disclaimer of their “attempt” to provide you the “best legal advice.” “Your results may vary.”
We can have this law tax expert give us advice but then have the IRS law tax experts say she is wrong. Then they both go to court to argue their side as to how they interpreted the law. The IRS always wins.
IRS actually gives in on a lot of arguments. In an IRS audit, the lower level auditor will just go down the checklist and you often lose, but then in IRS Appeals and especially IRS Tax Counsel, they tend to be a lot more reasonable. IRS Counsel's #1 priority is settling the case so it doesn't go to Tax Court, so they compromise if you have a good argument, and even give in if you've got clear tax law cited. They view it as a risk to go to Tax Court and it takes up valuable time on the docket for other cases, so they will often settle even if the argument isn't perfect.
@@taxleverage
Good to know. Appreciate the info.
Does the state tax board do the same? Any experience with CA?
@@bdog0720 States are harder to work with, especially California. You should still be good if you’ve got a solid legal position, but if not then it’s more difficult than the IRS. The IRS is very overloaded and understaffed. CA really needs to tax money and has more staff compared to the population vs the IRS
@@taxleverage
Thank you.
What about where the clothes are used in a production of fashion videos ala vivacious honey.
Nope.
If it's the equivalent of a costume. Then yes. The simple question is would a normal person under normal circumstances wear it?
Grocery store, taking the kids hiking?
Better chance of a construction worker writing off safety pink shirts than someone writing off an expensive suit.
People running trillion dollar companies don't write off their clothes, so how can any of the 200,000 people under them consider them necessary????
In construction, it's steel toe boots, and that's it. My glasses are safety rated, but I don't take them off for another pair at the end of the day because they don't function in my personal life.
Really, it would an IRS employee consider it normal attire after being trained by the IRS to do audits.
IRS employees are going to be more conservative than the law requires. 99% of the time, people don't appeal that judgment through 2 layers of the IRS to get the tax court to overrule them.
@@sparksmcgee6641 you should be able to write of the delta between the cost of normal glasses and the safety rated?