Can You Deduct Clothing as a Business Expense?
Do you have a business that requires specific clothing or uniforms for you or your employees? If so, you may wonder if you can deduct the expenses for those uniforms as a business expense. The answer is, it depends.
What Can You Deduct?
Generally, you can deduct consistent costs that are necessary for your business. You must have the required clothing for some type of business purpose for it to qualify for deductions.
What Types of Clothing May Qualify?
Here is a list of some types of clothing that may qualify as a legitimate business deduction:
- Protective equipment – safety glasses, hard hats, steel-toe shoes, aprons, uniforms
- Company logo apparel – clothing and accessories with your business logo
- Company-required attire – uniforms, dress clothes, gowns
Limitations on Deductions
Be aware that there are some limitations for clothing deductions. Here are some things to note about clothing deductions:
- You can deduct the cost of clothing but not the cost of alterations.
- Any clothing, uniforms, or shoes you purchase must be used only for business purposes.
- You cannot deduct apparel used for both business and personal purposes.
- You cannot deduct clothing you wear to work on a regular basis, such as suits and dress shirts.
Deducting clothing expenses is a complex issue and should be evaluated carefully. It is important to speak to a tax professional to help you understand what expenses you are eligible to deduct. By understanding the rules, you can maximize your business deductions and save money.