Tax write-off question

[ALawPoker]

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.

[The Bandit Fish]

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.

[1p0kerboy]

Can businessmen write off suits and other attire?

[Poker_Ace]

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.

[DJSHAD0W]

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?

[ALawPoker]

[ QUOTE ]
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.

[/ QUOTE ]

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]

[ALawPoker]

[ QUOTE ]
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?

[/ QUOTE ]

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.

[jively]

[ QUOTE ]
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?

[/ QUOTE ]
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

[ALawPoker]

[ QUOTE ]
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.

[/ QUOTE ]

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.

[4_2_it]

Your dad is correct.