Beauty Salon Expenses

[nkustura]

I have a client who started her beauty salon in Aug 2012. She kept pretty good records so it wasn't too hard to do the bookkeeping and figure out actual expenses and deductions. However, I am not really sure for the home use expense, so I figured I will ask here. My client is taking home all of the dirty towels from the salon every night and washes them at home using washer/dryer that is used for personal use as well. Other than detergent that is bought from the business account, I am not sure what other expenses she can claim regarding this activity. I am thinking electricity, water, etc.

Any help will be greatly appreciated.

Thanks,
nkustura

[KBTS]

You would need documentation on the business use of the washer/dryer and then how much this translates to in terms of electricity/water/etc. I cannot imagine the possible deduction is going to worth all the hassle involved in trying to keep track of all this. Now if she took the laundry to a laundromat or laundry service, that would be another story.

[TAX4US]

It seems to me a couple years back that IRS allowed a $3.00 wash limit on some uniforms etc. Will try to find this as time permits. May be someone else has run into this b4. Just my take.

[taxmom34]

i never heard of this $3 limit for washing uniforms, hopefully someone here will come up with a cite or reg. i'm very curious as it could have come from another hairdresser. lol

[Burke]

This would apply to upkeep of uniforms as an employee business expense taken on Sche A, and would have no particular bearing on a beauty shop's washing of towels at home. The IRS instructions for uniforms just say "upkeep." There is no set $$ figure for this. The $3must have been an arbitrary figure in a court case or ruling in a particular situation. Sounds like a routine dry cleaning fee, but it would be more now in my experience. Not familiar with any specific case.

[smithtax]

i never heard of this $3 limit for washing uniforms, hopefully someone here will come up with a cite or reg. i'm very curious as it could have come from another hairdresser. lol

No. The master plumber.