I'm new to CAP...and like many others I have spent a small fortune on uniforms and ES items in late 2012.
Does anyone know if we can write off our uniform and/or equipment expenditures?
What about out of pocket mileage to and from bivouacs?
Thank you for your help!
Yes, yes, and yes, assuming you itemize.
Consult your tax person for details.
On the flip side, gas for the CAP van, obviously I can't do it by mileage, so that's by the dollar amount. The only thing that sucks about that is on the dollar amount you don't get a real equal on it. :(
OTOH, you do get the pay back from the cadets when they say Thank You for being there for them. So..
Quote from: SAREXinNY on February 06, 2013, 11:30:57 PM
Does anyone know if we can write off our uniform and/or equipment expenditures?
The IRS has long taken the position that if an item of clothing can be worn as every day wear, whether you do or not, then it is not deductible.
Some examples, dress shoes you bought for your dress uniform but never wear outside of CAP - sorry not deductible.
If your pants have no distinguishing marks that make them a uniform then they are not deductible. Ditto for the shirt, etc. etc. etc. See page 5 of IRS Pub 526 Charitable Contributions:
QuoteUniforms. You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization.
^ Subjective interpretations like these are best left between the member and their tax professional.
Quote from: Eclipse on February 07, 2013, 02:13:21 AM
^ Subjective interpretations like these are best left between the member and their tax professional.
It is not subjective - the rule is very clear. So are the Tax Court opinions on the issue. Be very concerned if a "tax professional" tells you that you can deduct dress shoes, undistinguished pants and shirts etc. More likely than not, they are letting you play the audit lottery. If your "tax professional" tells you to deduct it anyway, then ask them how their opinion squares with the pub cited above and Tax Court opinions on the matter.
The rule about the deductibility of uniform items is the same for charitable organizations as it is for employee business expenses. If you can wear it as everyday wear, whether you do or not, it is not deductible.
As an example, this is from a Tax Court Decision, Farran v Commissioner T.C. Memo. 2007-151, page 15. The decision states the rule of law and cites earlier cases to make its point. The rule has been around for a very long time, since at least 1958.
QuoteExpenses for uniforms are deductible if the uniforms are of a type specifically required as a condition of employment, the uniforms are not adaptable to general use as ordinary clothing, and the uniforms are not worn as ordinary clothing. Yeomans v. Commissioner, 30 T.C. 757, 767-769 (1958); Beckey v. Commissioner, T.C. Memo. 1994-514.
That case dealt with cleaning expenses but the rule is the same whether you are trying to deduct the expenses to clean a uniform or to acquire it in the first place.
Or you can spin the wheel and hope you don't get audited. The odds are actually in your favor, but I think cheating on taxes somehow doesn't square with CAP principles.
BTW - insignia and badges, being distinguished as uniform items are deductible.
So...in some cases I can deduct cellphone charges used for work, but not uniforms? Got it.
RRLE, you're making my point for me. This is not a tax advice board, relevant cites or not.
Your interpretation of the standard is fine, for you. You're comfortable with that, excellent.
It should be left at that.
As a former tax professional, I can say that RRLE's interpretation is essentially correct. The law is pretty specific.
It really sucks for folks who wear the corporate uniforms. The only things really deductible are the polo shirt, and the ribbons and insignia. Even BDUs and BBDUs are questionable, due to their availability at surplus stores, and the fairly common wear by civilians.