Make a dress suit tax deductible?

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I know a suit (a normal black dress suit) is not tax deductible in general due to the fact that it can be worn for business or non-business occasions. However, I was thinking about it, and I was wondering if the business actually purchases the suit, owns it, issues it out for business meetings and takes it back after the meeting, dry cleans it, etc..., shouldn't it be a tax deduction for the business.

Here is my situation. I am the sole member of an llc taxed as an s-corp. Can I do this make set it up as a business expense and therefore a tax deduction?

thanks



No. At the very least, be very prepared to spend a lot of money on legal bills to defend yourself in an audit, then be prepared to pay taxes and heavy penalties and interest once you lose your case (and you WILL lose your case).


You could become a suit salesman...


jetsfan92588 said: I know a suit (a normal black dress suit) is not tax deductible in general due to the fact that it can be worn for business or non-business occasions. However, I was thinking about it, and I was wondering if the business actually purchases the suit, owns it, issues it out for business meetings and takes it back after the meeting, dry cleans it, etc..., shouldn't it be a tax deduction for the business.

Here is my situation. I am the sole member of an llc taxed as an s-corp. Can I do this make set it up as a business expense and therefore a tax deduction?

thanks
Sure. Get a big, annoying, and permanant logo fixed conspicuously on your suit. Superman ran it through as a business expense. Why not you?


wow-i didn't think it would be that resounding of a no. lol

just curiously, what if I was just an employee of a large c-corp (like fortune 500) where i had no ownership whatsoever and they did this with suits for employees. Would it then be tax deductible to them? thanks


Nope

The only time it's deductible is if you are required to purchase a uniform specifically for work (i.e police officer, mailman, etc)


jetsfan92588 said: wow-i didn't think it would be that resounding of a no. lol

just curiously, what if I was just an employee of a large c-corp (like fortune 500) where i had no ownership whatsoever and they did this with suits for employees. Would it then be tax deductible to them? thanks
You'd likely be creating a form of taxable compensation for the employee by paying them with the usage of clothing which was non-company specific and could be used for other purposes.

Put logos or company names on the jackets and maybe you'd have a case.


jetsfan92588 said: wow-i didn't think it would be that resounding of a no. lol

just curiously, what if I was just an employee of a large c-corp (like fortune 500) where i had no ownership whatsoever and they did this with suits for employees. Would it then be tax deductible to them? thanks
Yes, it would likely be tax deductible to the corporation but it would be a fringe benefit to the employee (and thus taxable to the employee). You aren't going to get a benefit from deducting it on the corporate tax return and including it on your W-2.


Sec. 132(d) does indeed say that the standard for excluding a "working condition fringe" is the same as the standard for deducting it if paid by the employee.

I wonder if this is really the case, though. If a professional athlete is supplied by his employer with equipment (beyond the uniform), such as athletic shoes, only to be used by the athlete in competition or, maybe, in practice, that doesn't feel like it should be taxable; is there a good argument to differentiate a business suit from a pair of Nikes?


I for one think this law is bullshit. I never wear a suit anywhere but work. I could wear it to a $500/night restaurant but I don't go to those.

I could also wear scrubs to McDonalds but scrubs are deductable.


tripleB said: I for one think this law is bullshit. I never wear a suit anywhere but work. I could wear it to a $500/night restaurant but I don't go to those.

I could also wear scrubs to McDonalds but scrubs are deductable.

it seems like a significant amount of tax law makes absolutely no sense.


jetsfan92588 said: tripleB said: I for one think this law is bullshit. I never wear a suit anywhere but work. I could wear it to a $500/night restaurant but I don't go to those.

I could also wear scrubs to McDonalds but scrubs are deductable.


it seems like a significant amount of tax law makes absolutely no sense.

It's almost as though they are saying, if you need to wear a suit to work, you must be wealthy so don't need a tax write off because any job that requires a suit daily must be high paying. And if you are poor then you need the deductions more so if you're a medical assistant wearing scrubs you get the writeoff.

The irony is that the lower income people who are eligible for writeoffs on their scrubs and janitor's pants do not itemize and the "rich" people who have to wear a suit to work actually do itemize.


Actually this brings up an interesting point. Google offers free meals to employees and many tech companies offer free drinks (soda, coffee and juice) to their employees. What tax implications are there in those cases?


If suits were deductible, Congress would probably cap the deductible amount at the price of a JC Penneys suit special ($119).


Xnarg said: If suits were deductible, Congress would probably cap the deductible amount at the price of a JC Penneys suit special ($119).With clawbacks if you work for the banking, insurance, or health care industry


Xnarg said: If suits were deductible, Congress would probably cap the deductible amount at the price of a JC Penneys suit special ($119).

If it's a good enough suit to wear on the floor of the senate, it's a good enough suit for me.


Jobowoo said: Google offers free meals to employees and many tech companies offer free drinks (soda, coffee and juice) to their employees. What tax implications are there in those cases?Free coffee, soda, snacks, etc. will be tax free. Occasional meals to make it easier for employees to work overtime can be tax-free. Any kind of meal on a regular basis is going to be taxable.


LH2004 said: Jobowoo said: Google offers free meals to employees and many tech companies offer free drinks (soda, coffee and juice) to their employees. What tax implications are there in those cases?Free coffee, soda, snacks, etc. will be tax free. Occasional meals to make it easier for employees to work overtime can be tax-free. Any kind of meal on a regular basis is going to be taxable.

Google offers free lunch/dinner to its employees every weekday.


WalletWalletWallet said: You could become a suit salesman...but then it would be inventory.


Yep. If you place your logo on the shirt and jacket you can deduct it. Not sure about the pants. Maybe want to check with the KGB.



lesko (13.38kB)
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LH2004 said: Sec. 132(d) does indeed say that the standard for excluding a "working condition fringe" is the same as the standard for deducting it if paid by the employee.

I wonder if this is really the case, though. If a professional athlete is supplied by his employer with equipment (beyond the uniform), such as athletic shoes, only to be used by the athlete in competition or, maybe, in practice, that doesn't feel like it should be taxable; is there a good argument to differentiate a business suit from a pair of Nikes?
yes.


(Lesko LOL!)

Lesko's got a chance if he's audited, but he may also have to fight for his right to deduct that god-awful thing. The general rule is that anything that is considered "wearable" outside of employment is a taxable benefit. It would likely boil down to the opinion of the auditor assigned to his case.

When I was with local government we got dinged with one of these IRS audits. End result was that some of the money that we were paying our police force for uniform expenses was considered taxable compensation to the police officer. Most of the uniform was ok -- but they would not allow the belts, socks and shoes.


LH2004 said: Jobowoo said: Google offers free meals to employees and many tech companies offer free drinks (soda, coffee and juice) to their employees. What tax implications are there in those cases?Free coffee, soda, snacks, etc. will be tax free. Occasional meals to make it easier for employees to work overtime can be tax-free. Any kind of meal on a regular basis is going to be taxable.

That's not entirely true. Employer provided meals can be tax free depending on the situation. Casino employees, for example, get tax free employer provided meals because they are not allowed to leave the premises during their breaks. The same could be true for workers like firefighters. The key is that they are provided for the employer's convenience, not the employee. Google, well, I don't know about that one.


jetsfan92588 said: I know a suit (a normal black dress suit)


I stopped right there. Why would you buy a black suit? Are you a waiter or something?

To all the young inspiring businessmen of FWF - don't buy a black suit for work unless you are in Hollywood or are a servant. Go charcoal grey or navy blue.


Educate yourself. Publication 15 and Publication 15A


comptalk said: Yep. If you place your logo on the shirt and jacket you can deduct it. Not sure about the pants. Maybe want to check with the KGB.

Have you seen the pants you must wear at Hot Dog on a Stick?

jobowoo said:
Actually this brings up an interesting point. Google offers free meals to employees and many tech companies offer free drinks (soda, coffee and juice) to their employees. What tax implications are there in those cases?

Uh, oh. Many many years ago I worked at Taco Bell and employees got to eat free there, and this wasn't even a tech company. I never claimed those meals as income. But I think I'm safe. Even the IRS can see that whatever they serve at Taco Bell can't be considered a meal.


myadvice said: (Lesko LOL!)

Lesko's got a chance if he's audited, but he may also have to fight for his right to deduct that god-awful thing. The general rule is that anything that is considered "wearable" outside of employment is a taxable benefit. It would likely boil down to the opinion of the auditor assigned to his case.

Actually, Lesko can't deduct the suit. He bought it and was wearing it years before he started his business. For him, that suit is like jeans and a t-shirt for you or me.


shadow520 said:

That's not entirely true. Employer provided meals can be tax free depending on the situation. Casino employees, for example, get tax free employer provided meals because they are not allowed to leave the premises during their breaks. The same could be true for workers like firefighters. The key is that they are provided for the employer's convenience, not the employee. Google, well, I don't know about that one.

does google let you leave when you're on break? they have a lot of ip that they are trying to protect i assume so it may be considered for the convenience of the employer. my friend worked for a video game testing company and was required to check his cell phone with security before beginning work and pick it up at the end of the day.


Oh sure, like a guy in a $5000 suit is going to take a tax deduction! COME ON!


Oh GOB, how I miss thee...


wilesmt said: jetsfan92588 said: I know a suit (a normal black dress suit)


I stopped right there. Why would you buy a black suit? Are you a waiter or something?

To all the young inspiring businessmen of FWF - don't buy a black suit for work unless you are in Hollywood or are a servant. Go charcoal grey or navy blue.
the charcoal suits don't go over too well in Federal court.




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