Tax write-off question
 

My Dad (who is also my accountant) told me that he doesn't think I can write off my sunglasses as a business expense. It's kind of annoying, because I really did buy them specifically to wear in the ws. I don't really wear sunglasses much. So my conscience tells me I'm entitled to the $400 write off (they're prescription), but logically I see why it's not really an acceptable write off. The analogy my Dad gave me was that a professional golfer who chooses to wear sunglasses while he plays can't write them off, even though they might help his performance.

But I dunno. It still feels like a surefire expense to me. I trust my Dad's professional opinion, even though he hasn't been an actual account for a number of years, but I'm curious if anyone has a different opinion. Or if anyone has any experience with this, and whether or not the IRS gave you any hassles.

Also feel free to discuss really anything related to tax write-offs, or ask other questions.

Re: Tax write-off question
 

Ask him if they can be considered a medical expense (since they are prescription). I doubt it can be done that way either, but it never hurts to ask.

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Can businessmen write off suits and other attire?

Re: Tax write-off question
 

Your father most likely is correct, but it is +EV to write them off anyway. Your risk of an audit is very small and you have an argument that the sunglasses were purchased for work; even if the IRS disallowed the deduction (highly unlikely that you would have to substantiate the deduction in the first place), you would just owe the tax and some interest and possibly an accuracy related penalty.

No, businessmen cannot write off suits, etc. Clothing can only be deducted if it is a uniform that is required by the employer.

Re: Tax write-off question
 

How do you write off the travel expenses to & from the WS?

The reason I ask is, I can't find a line on the 1040 Tax form where you can deduct milage driven on a private car for a job. Any one have any idea?

Re: Tax write-off question
 

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Ask him if they can be considered a medical expense (since they are prescription). I doubt it can be done that way either, but it never hurts to ask.

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Nah. I can write off my medical insurance plan, but not medical expenses that the plan doesn't cover. I guess the logic is that I (as an employer of myself) am giving myself the coverage. (If you work for a company, you don't have to include the value of the plan they give you as "income," but the company will write it off as an expense.) But, outside expenses would be things that I, as the employee, am paying for (not any different than a 9 to 5er who has to dig into his wallet for a medical cost that his plan doesn't cover).

I guess if I staged a meeting with myself in my home office that doesn't actually exist and asked me to cover my additional medical expense because it benefits my work, then it might be legit. [img]/images/graemlins/tongue.gif[/img]

Re: Tax write-off question
 

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How do you write off the travel expenses to & from the WS?

The reason I ask is, I can't find a line on the 1040 Tax form where you can deduct milage driven on a private car for a job. Any one have any idea?

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Can you deduct gas mileage for a job? I'm no expert on this stuff, but that just doesn't seem like something you can do. I assumed that either your company provides transportation (or reimburses you), or you eat the cost.

The reason you can do it if you're self-employed is because you are acting as the business (providing transportation to yourself with the intent to profit). So like I said, if your employer gave you gas money, *they* could write it off.

As far as how/where exactly I write off those expenses, I couldn't tell you. I've never filed the actual tax form. I just give my dad my information, and he takes care of it. But travel expense is a pretty standard deduction, as far as I'm aware.

Re: Tax write-off question
 

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How do you write off the travel expenses to & from the WS?

The reason I ask is, I can't find a line on the 1040 Tax form where you can deduct milage driven on a private car for a job. Any one have any idea?

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It's on Schedule A under "unreimbursed employee expenses" (line 20). In that whole "Job Expenses and Certain Miscellaneous Deductions" section, only the amount over 2% of your AGI are deductible. Then your itemized deductions are only deductible if they are over your standard deduction. So, you might not get that much of a deduction.

-Tom

Re: Tax write-off question
 

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Your father most likely is correct, but it is +EV to write them off anyway. Your risk of an audit is very small and you have an argument that the sunglasses were purchased for work; even if the IRS disallowed the deduction (highly unlikely that you would have to substantiate the deduction in the first place), you would just owe the tax and some interest and possibly an accuracy related penalty.

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Ya, this is a good point and something along the lines of what I was thinking. It's not as if I'm getting locked up if the IRS doesn't agree with the write off. The only problem is, my Dad is an ethical man. I don't have the same respect and regard for "the system" as he does, so personally I have no problem cheating it. But in my exact case, I might be better off just eating the cost than trying to convince my Dad to do something he is not OK with. Having an accountant who I trust (and who doesn't charge me) is a pretty sweet deal anyways.

Re: Tax write-off question
 

Your dad is correct.

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Gross incompetence. Your dad is 150% incorrect. Very EZ deduction. The pro golf comparason is WEAK. I smell lawsuit.

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I disagree with your father. I am a police officr and I can write off uniform shoes, a new gun, a flashlight etc. These are all tools that I need to do my job. You can easily make a case that sunglasses are a tool that you use to do your job better. They are not an article of clothing in this instance. I would claim them.

Re: Tax write-off question
 

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I disagree with your father. I am a police officr and I can write off uniform shoes, a new gun, a flashlight etc. These are all tools that I need to do my job. You can easily make a case that sunglasses are a tool that you use to do your job better. They are not an article of clothing in this instance. I would claim them.

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I agree that the sunglasses are a necessary tool for my job. I guess the IRS might not see it that way though. In your case, a police officer *needs* to have a gun and flashlight, and it's hard to argue against that. There's a ton of gray area, but I'm guessing they'd tend to give the benefit of the doubt to the police officer over the poker player. In their eyes I don't need the glasses to do my job.

I'll probably end up writing them off and taking my chances anyways. As far as I'm concerned, they're a necessary tool. Thanks for all the feedback guys.

Re: Tax write-off question
 

Here's the determining factor that defeats the personal use agrument. The purpose of sunglasses is to protect your eyes from sunlight and to make yourself more comfortable while outside, either driving a car or hitting a golf ball. Your sunglasses are worthless outside because they're prescription glasses. They cannot be used for outdoor activities, as noted above, because you are far-sighted, thus making them useless for anything other than sitting at a poker table. The IRS would have to prove there is a need for prescription sunglasses indoors other than poker for a farsighted individual. Pretty silly argument, unless he can show that the average male uses them to watch TV or to have sex. Its a "slam dunk".

Re: Tax write-off question
 

From the IRS website. Prety clear you will lose if audited. It's up to you how aggressive you want to be.

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Work Clothes and Uniforms

You can deduct the cost and upkeep of work clothes if the following two requirements are met. <ul type="square">
[*]You must wear them as a condition of your employment.
[*] The clothes are not suitable for everyday wear.[/list]
It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.

Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.).

Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.

However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible.


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Re: Tax write-off question
 

I assume you are a professional and will be filing a business return such as a Schedule C, not as an employee as referenced "by 4 2 it". The "WORK CLOTHES and UNIFORMS" section of Publication 529, pages 3 and 8, is for employees of a business.

You on the other hand are running a business, and as such can deduct the costs of running your business. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. Surely sunglasses are both common and accepted in the world of professional poker. A necessary expense is one that is helpful and appropriate for your business. Prescription glasses are both helpful and appropriate, due to the long hours at the tables and the need to see clearly. Prescription sunglasses for a farsighted individual are useless, unless sitting at a poker table. It doesn't get any easier than this at tax time.

Like I said "SLAM DUNK".

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What if you're nearsighted? I'm in the same situation and never considered that could be deductible, heh.

Re: Tax write-off question
 

CPA,

I'm actually near-sighted (I need the prescription to see the community cards and the other players' faces). Most of what you say still applies, but they will still be able to claim that the glasses have personal use. Do you stand by your advice?

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If you can answer yes to both "ordinary and necessary", then without question, YES. So many things with the IRS depend on facts and circumstances, its just presentation for the most part. It comes down to how you answer the first five questions an auditor will ask in the first five minutes of an audit. The case, as stated by you, is EZ. Best of Luck.

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While we're at it, can we write off the Cat in the Hat hat and the plaid slacks I bought, to make people aware that I'm a goof at the tables and therefore an easy mark?

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Only if your children supervise (signal other players cards via the Hat) during home games, while you and your wife play.

Re: Tax write-off question
 

cheapskate

Re: Tax write-off question
 

This is quite possible the most retarded post and biggest waste of time i have ever seen. what limits are you playing and how bad of a poker player do you have to be for you to worry about 400 dollar pair of glasses. thats barely even a buy in for most games...take the loss and get over it you donk....quit hiding behind glasses just because your scared .....