Tailsuits and taxes: CPA or lawyer's opinion sought

[suburbaknght]

This is for people familiar with American tax code:

As a professional instructor, but one employed by a studio, could I write off the cost of a tailsuit on my taxes? What if my employer purchased it for me; could she write it off? As I understand it, the costs for writing off clothing mean something worn only for work (and as fun as it would be to visit a diner in an eighteen-hundred dollar suit...).

I realize this is not a legal site and that advice here should only be considered as a starting ground for further research.

[JANATHOME]

My No #1 rule as a CPA, never give advise over the internet! But it is worth researching or asking your tax preprer.

[Josh]

suburbaknght, I'm not a tax professional, but I have done my taxes for years and as a dance professional, I write off all dance-related purchase on clothes that are used exclusively for dancing, and this would absolutely, 100%, include a tailsuit. You would write off dance shoes, wouldn't you? Of course--so the tailsuit is absolutely a legitimate deduction. Save your receipt, and you'll be fine. Oh, and this is true whether you are independent or employed by a studio.

And if your employer purchased it, yes, they could deduct it as well.

[Larinda McRaven]

I write off my costumes.

[nucat78]

Often, Internet advice is worth what you pay for it, but...

Work related supplies can be deductible, depending on the situation. If you could reasonably prove to an auditor that your shoes, tailsuits, etc are required to perform your duties, you'd probably be ok.

But you ought to talk with your tax advisor. See also w.w.w.irs.gov.

[Josh]

FWIW, I think you want irs form 2106, if memory serves me correctly, but I could be remembering wrong--that's if you are a w-2 employee (or maybe 1099 too?). I think that's unreimbursed expenses. If you're sole proprietor then you'll do a regular 1040 schedule c deduction.

And definitely talk to your tax pro--but a dance tailsuit is not even questionable, not even in the realm of question actually. :-)

[Larinda McRaven]

I know one former US Smooth Finalist who got audited. He had a heck of a time proving that his shoes were work related expense. Tailsuit yes, but for whatever reason the auditor got stuck on the shoes.

[Ithink]

Well, conceivably he could wear the shoes out on the street as normal street shoes and it's a lot easier to imagine that situation than wearing your tailsuit out and about... Shoes are way harder to prove because it's a lot easier to imagine them not being used exclusively for dancing. That would be the reason he had a hard time with the shoes.

[Larinda McRaven]

Yah, I am sure you are right. And maybe because he was trying to expense a high number of them, like 20 or something.

[Peaches]

You might want to get in touch with the IRS (I image that by phone would probably be best) and ask for a Private Letter Ruling.

Edit to add: Phone numbers
h t t p://www.irs.gov/help/article/0,,id=96730,00.html

[nucat78]

a dance tailsuit is not even questionable, not even in the realm of question actually. :-)

Prove that it's not used for formal social events or a Halloween costume. ;)

(Sorry, just being a jerk...)

[reb]

I am not a CPA, but I did stay at a Holiday Inn Express last night . . . :D

[elisedance]

I write off my costumes.

wait a minute, I thought you didn't pay for your costumes!

OTOH - good move! :snake:

[etp777]

Heh, I wondered about that same thing, ED, but I figured more power to her. :)

[Larinda McRaven]

wait a minute, I thought you didn't pay for your costumes!

OTOH - good move! :snake:

Shoes, tights, hair sparklies...

Hey a girl has to have more than just a gown!

[Josh]

Prove that it's not used for formal social events or a Halloween costume. ;)

(Sorry, just being a jerk...)

I know you're kidding but you do bring up a good point. The burden of proof ultimately lies with the taxpayer to prove that a deducted costume was used exclusively for professional reasons. Ultimately of course, one cannot logically disprove the existence of ANYthing, and hence you can't prove that you did NOT wear something at some time for something else, without seriously disrupting your life--you can't prove that every Friday night you did NOT wear the tailsuit to bed as pajamas, for example.

Fortunately, even the most strict auditor would understand that the construction of the suit alone would make it difficult to wear under normal situations, and that the sole of dance shoes are destroyed when worn in rainy weather or on asphalt/concrete surfaces, etc. But in the event that you do get assigned a wiseguy as an auditor, it is your RIGHT (see IRS publication #1) to request a different auditor. It is your RIGHT to contact his/her manager, and to contact that manager's director if the manager does not satisfy your request. You have the RIGHT to know why they ask what they're asking, how they know what they know, and how they're going to use what you tell them. Too many people give the IRS too much credit for how much they know about them and what their rights are, and fail to recognize their own rights.

[Peaches]

I know you're kidding but you do bring up a good point. The burden of proof ultimately lies with the taxpayer to prove that a deducted costume was used exclusively for professional reasons. Ultimately of course, one cannot logically disprove the existence of ANYthing, and hence you can't prove that you did NOT wear something at some time for something else, without seriously disrupting your life--you can't prove that every Friday night you did NOT wear the tailsuit to bed as pajamas, for example.

Fortunately, even the most strict auditor would understand that the construction of the suit alone would make it difficult to wear under normal situations, and that the sole of dance shoes are destroyed when worn in rainy weather or on asphalt/concrete surfaces, etc. But in the event that you do get assigned a wiseguy as an auditor, it is your RIGHT (see IRS publication #1) to request a different auditor. It is your RIGHT to contact his/her manager, and to contact that manager's director if the manager does not satisfy your request. You have the RIGHT to know why they ask what they're asking, how they know what they know, and how they're going to use what you tell them. Too many people give the IRS too much credit for how much they know about them and what their rights are, and fail to recognize their own rights.Very true. And, don't forget, there is the Taxpayer Advocate Service, which is also there to help.

However, most people don't realize what-all can be seen from a return. I'm not talking about other forms, just that when you work with a certain type of return for any length of time it becomes very easy to spot trends and other tip-offs. An experienced auditor knows this, and has seen tons of returns, and can spot trends. Returns have interesting give-aways.

[Mandicraft]

I would definitely consult a professional, but if I remember my tax classes correctly, if your employer bought it for you, you cannot deduct it. As for if your employer can write it off, I don't know.

[Larinda McRaven]

How about when your employeer buys it for their business, and yet takes the money out of your paycheck? Who gets to deduct it then? They have the reciept and the product...? And you get a ripped off paycheck?

[Ithink]

and that the sole of dance shoes are destroyed when worn in rainy weather or on asphalt/concrete surfaces, etc.

I know many West Coast Swing dancers who wear their dance shoes outside. Obviously not in the rain but definitely on concrete, etc. I also saw Peaches wear her hot tango shoes outside several times:)

[White Chacha]

I ain't no lawyer but that doesn't seem right. (Larinda's last note).

[Peaches]

I know many West Coast Swing dancers who wear their dance shoes outside. Obviously not in the rain but definitely on concrete, etc. I also saw Peaches wear her hot tango shoes outside several times:)Mine are leather soled and designed to also be worn as street shoes, though.

[Another Elizabeth]

How about when your employeer buys it for their business, and yet takes the money out of your paycheck? Who gets to deduct it then? They have the reciept and the product...? And you get a ripped off paycheck?

I'm not a tax lawyer and this is not a legal opinion, but I think it depends on whether it comes out of your check before or after taxes. If it comes out of the pretax paycheck, they get the deduction. If it comes out of the posttax paycheck, you get the deduction.

[JohnLL]

How about when your employeer buys it for their business, and yet takes the money out of your paycheck? Who gets to deduct it then? They have the reciept and the product...? And you get a ripped off paycheck?

That's awful!

[Josh]

How about when your employeer buys it for their business, and yet takes the money out of your paycheck? Who gets to deduct it then? They have the reciept and the product...? And you get a ripped off paycheck?

Well hopefully this scenario would never happen, or if it did, the person would discontinue their employment there and file a lawsuit immediately. If the business buys it, and therefore owns it, then it should be totally invisible to the employee, thus never coming out of his or her pay. As an employee, if you pay for something used for business, like a tailsuit, or meals and incidentals on a business trip, and are not reimbursed for it, then you file form 2106 and deduct those expenses from your taxable income. Of course, you still get ripped off this way, as you still had to pay and thus only get maybe 25% of that back, but it's better than eating it all yourself.