Can Fashion Industry Biz Deduct Clothes, etc.?

[expatpumpkin]

Does anyone know if clothing and accessories are tax-deductible for owners of companies and/or contractors in the field of fashion?

Example: clothing designer needs luxury handbag as part of fashion photo shoot and to use at meetings with buyers, etc. in order to "look the part."

[expatpumpkin]

I've heard of compensation packages (not in fashion) coming with clothing allowances... Presumably this is tax deductible to the company? Any idea?

[stumpy]

I am an actor and anything I wear in my every day life can't be deducted.
A photo shoot might be one thing (but normally those things are borrowed from the designer or bought with the production budget)
I can deduct a LOT of things -- but clothes need to be costume oriented and only for that specific part. (If I used it outside that job then I couldn't deduct it)
Things need to be distinctive in order to be deducted and/or specifically required.

[expatpumpkin]

Jul 9, 2012 12:29:05 GMT -5 stumpy said:

I am an actor and anything I wear in my every day life can't be deducted.
A photo shoot might be one thing (but normally those things are borrowed from the designer or bought with the production budget)
I can deduct a LOT of things -- but clothes need to be costume oriented and only for that specific part. (If I used it outside that job then I couldn't deduct it)
Things need to be distinctive in order to be deducted and/or specifically required.

Thanks for the info. In the example above, do you think the production company could deduct clothing/accessories that they had to buy because they were needed to complete the shoot?

[peachie]

When I was interning and doing PR for a higher-end boutique, the head buyer was given a "clothing allowance" every month from the boutique's owner. Not sure how much it was though. But she bought items from the store a lot.

[peachie]

Jul 9, 2012 12:59:03 GMT -5 expatpumpkin said:

Jul 9, 2012 12:29:05 GMT -5 stumpy said:

I am an actor and anything I wear in my every day life can't be deducted.
A photo shoot might be one thing (but normally those things are borrowed from the designer or bought with the production budget)
I can deduct a LOT of things -- but clothes need to be costume oriented and only for that specific part. (If I used it outside that job then I couldn't deduct it)
Things need to be distinctive in order to be deducted and/or specifically required.

Thanks for the info. In the example above, do you think the production company could deduct clothing/accessories that they had to buy because they were needed to complete the shoot?

Could you get the items on loan from the store? The boutique I mentioned above constantly was giving items on "loan" to magazines for photo shoots, etc. Of course, it was a win-win for them because then they got the credit and people saw their merchandise in magazines. We'd always loan out- and would only make the magazines or stylists pay if something came back damaged.

[expatpumpkin]

Jul 9, 2012 13:22:53 GMT -5 operagirl said:

No, not deductible if can be worn in real life. I used to be a tax auditor a lifetime ago. I once audited a prostitute who actually reported her business income or some of it. I let her deduct a few things not suitable to wear on the street ;-) An "image" thing is a Never.

That was sweet of you

I'm considering getting it for a shoot. I don't think they'd loan it to me. OF COURSE I'll use it later, so it looks like deducting it is a no go

I knew it was a stretch, but I figured it wouldn't hurt to ask

[jwright]

There was just a ruling last year about a news anchorperson whose employer required him to wear conservative clothes on air. Even though it was required by the employer, a deduction for the clothes was not allowed. If the clothes are suitable for everyday use (even if the employee doesn't or refuses to wear them) then there is no deduction for the individual.

She took it all the way to the US Court and lost and got hit with penalties.

[stumpy]

As a business owner, the cost of things needed for the shoot came from the client. So, if I was doing a commercial, the client would pay such and such and have a budget. The production company looked at all of the details of the shoot and would have to figure out what was needed. None of the expenses came out of pocket from anyone.
It's the cost of business and not a tax deduction. (This is professional job not a amateur shoot)

Again, I would highly recommend getting in touch with boutique stores, consignments, etc and see if you can have loaners.