Deduction reasonable?

[JG EA]

My client is self employed and travels often. He included his luggage as an asset and I didn't want to include it.

However, I just read (in NATP magazine) a court case about a flight attentant, who was allowed a luggage deduction. But the reasons for allowal may have to do with a size and color requirement for the luggage. The ariticle said though that it was reasonable because she traveled a lot.

What do you think? Could luggage be something ordinary and necessary if used only for business travel?

[JohnH]

I think it's an ordinary and necessary expense under the right circumstances. And good stuff that holds up well under lots of use can be very expensive. Given the proper information, I'd have no problem deducting it, although I think it should probably be a current deduction rather than a depreciable asset.

[JG EA]

Thank you - I respect your viewpoint.

By the way, that article was also very interesting about what was not allowed. For instance shoes were not considered uniform expense. And because of the inherently personal nature of hose, hair and nail maintenance - denied.

[taxea]

the IRS position is not is it necessary for the job but, more on the line of is it suitable for use off the job. This is why most shoes, nylons, makeup etc does not qualify. It might "fly" as 2106 expense for certain airline personnel...though doubtful to me. I don't know whether I would go so far as to include it as a business expense just because the TP travels a lot.

[erchess]

beg to differ

With all respect to taxea I don't see why the issue of some personal use much less suitability for personal use stops a deduction for luggage used mostly for business. We all know that work clothing has to be in some way clearly unsuitable for street wear and a home office has to be exclusively used for the business and listed property has to have personal use tracked and the corresponding percentage of the cost not deducted. These rules are specific to specific assets. Anything else I can think of that gets by the "ordinary and necessary" will in the real world get deducted in full even though we all know that nearly all workers make some personal use of their primarily business assets.

[JohnH]

Yes, the first thing which comes to mind is an automobile.

[taxea]

With all respect to taxea I don't see why the issue of some personal use much less suitability for personal use stops a deduction for luggage used mostly for business. We all know that work clothing has to be in some way clearly unsuitable for street wear and a home office has to be exclusively used for the business and listed property has to have personal use tracked and the corresponding percentage of the cost not deducted. These rules are specific to specific assets. Anything else I can think of that gets by the "ordinary and necessary" will in the real world get deducted in full even though we all know that nearly all workers make some personal use of their primarily business assets.

My scrutinity has been due to the way the IRS worded their examples and the rule. I suppose that if the item was allotted between personal and business one could take it but I have preferred to not take the chance, on this type of thing, that the IRS will disallow it on audit and cause penalties and interest to attach. I do explain the pros and cons to the TP as the final decision is theirs. Then you have the "but I only wear makeup, nylons etc at work". Ergo my adhereing as closely to IRS definition as possible on item of this nature. Unless the wording has changed I believe it is (not verbatim) not whether it is used/worn outside of work but whether it is suitable to be used/worn outside of work.

Look at how "tight" they are with what constitutes a uniform. I will go the extra mile for my client but not by going outside what I perceive to be the perameters set by the IRS. I just saying.

[Kram BergGold]

Take it

If the client says the luggage is only used for business travel it is 100% dedcutible. If client says 75% business deduct 75%. I can see the gray area, the luggage contains non business items like clothes but remember the cleaning of clothes while traveling is deductible if you do not use meal per diems (the cost of cleaning is part of the per diems).
So this says to me the luggage is deductible.

[Nashville]

I say Deduct Luggage

Of course, I am more liberal than many others, but meals, incidentals such as laundry, are deductible.

How can anything be more personal than laundry? Or meals, for that matter?

A secondary discussion in this thread has been raised about uniforms. Attire must be prolific to the occupation to be a deduction. A lawyer cannot deduct shoes and neckties just because he wears them, simply because shoes and neckties are "normal" attire for anyone. Workclothes for a blue-collar job are not a deduction just because they get dirty. People wear the same workclothes when mowing the yard.

Steel-toed shoes for someone who works with metal parts? Yes I think so. You wouldn't buy them to wear "just anywhere." White garments for nurses? Yes.

[JohnH]

T-shirts, shorts, and sandals for tax pros in the off-season? Yes

[ChEAr$]

If any piece of luggage is used exclusively to bundle up business items to take along, then yes.
If a piece of luggage is used solely to carry personal items, clothing, toiletries, books for reading in spare time, binoculars, cameras, etc.. then not on your life would I deduct it for a client.
And not even for a stew.

[Kram BergGold]

Luggage allowed by court

See Mary A Scott v Commissioner TC summary opinion 2010-47. This case was just reviewed in the Tax Pro Monthly for June 2011 by NATP.

[Black Bart]

But...but...Harlan...

...If a piece of luggage is used solely to carry personal items, clothing, toiletries, books for reading in spare time, binoculars, cameras, etc.. then not on your life would I deduct...

You're so strict! What about if I throw a copy of the TheTaxBook in there with my laundry and stuff?

[ChEAr$]

You're so strict! What about if I throw a copy of the TheTaxBook in there with my laundry and stuff?

Sorry, Bart; still wouldn't pass the smell test.

grin

[Burke]

FWIW, I have deducted luggage for a client who teaches all over the US and Internationally, and who must carry computers & materials in the course of his work. Of course, the roller carry-on for the bus materials is not in question, but since he must travel to the source of the job, I also have deducted certain luggage that is airline-worthy from time to time. It still gets destroyed after about 2-3 years, even the heavy-duty kind. I don't have a problem with the bus/personal-use percentage method.