Influencers can potentially write off clothing expenses, but there are strict guidelines that must be followed to ensure the deduction is valid. The IRS has specific rules on deducting clothing, and here’s how it works:
1. Clothing as a Business Expense
To deduct clothing, it must meet the following criteria:
- Ordinary and Necessary: The clothing must be directly related to your work as an influencer. For example, if you purchase outfits specifically for sponsored photoshoots or video content, they could be considered necessary for your business.
- Not Suitable for Everyday Use: The clothes must not be something you would wear in your personal life. For instance, if the clothing is a costume or branded merchandise used for a specific marketing campaign, it’s more likely to qualify as a deduction. Regular, everyday clothing that could be worn outside of your influencer work is generally not deductible.
2. Examples of Deductible Clothing
- Costumes: If you’re creating content that involves dressing up in costumes (for example, themed photo shoots or video series), these can be written off.
- Uniforms: If the clothing is required by a brand (like branded gear for a sponsored post) and not something you would normally wear.
- Specialized Attire: Clothing that is not suitable for daily use, such as a chef’s uniform or safety gear.
3. Non-Deductible Clothing
- Everyday outfits, even if you wear them for business-related content, are typically not deductible because they are considered personal expenses. For example, if you buy a dress that could be worn casually and use it for an Instagram post, it’s not tax-deductible because it has personal use beyond the business.
4. Documentation
It’s important to keep detailed records of your clothing purchases, including receipts, the purpose of the clothing, and how it was used for your business. This will be crucial in the event of an IRS audit.
Conclusion:
While influencers can sometimes write off clothing expenses, it’s only allowable when the clothes are exclusively for business purposes and not suitable for everyday wear. Make sure you track these expenses carefully and consult with a tax professional to ensure you’re meeting IRS guidelines.