Can You Deduct Clothing as a Business Expense? Here’s What the IRS Says!

If you’ve ever wondered whether you can write off that sleek new ‘fit or branded business attire for a photo shoot, you’re not alone. As entrepreneurs and professionals, we invest in looking the part—but does the IRS see it as a deductible business expense? Let’s break it down.

IRS Rules on Deducting Work Clothing

The IRS has a simple test when it comes to clothing deductions:

✅ Required for your job – The clothing must be specifically mandated for your work or business.

✅ Not suitable for everyday wear – Even if you only wear it for work, if it could be worn outside of work, the IRS won’t allow the deduction. This even means things you normally would not wear outside of work/that branding photo shoot.

Under IRC §162(a), business expenses must be ordinary and necessary to be deductible. Treasury Regulation §1.162-5 further clarifies that clothing is only deductible if it meets both of the above criteria.

A Guide to Business Gifts

If you’re in a business similar to mine where you have long-lasting client relationships or high ticket offers (courses, coaching, etc), you might want to think about gifting to your clients as appreciation for signing on with you, or as you close out an engagement. Of course, there’s always holiday gifting too. However, before you start shopping for presents to show your appreciation to clients, employees, or vendors, it's important to understand the IRS rules and requirements surrounding business gifting. In this blog post, we'll explore the dos and don'ts of business gifting and provide examples of what you can deduct and what you can't.

What is Considered a Business Gift?

A business gift refers to any item given to clients, employees, vendors, or business associates with the intention of promoting goodwill, strengthening relationships, or expressing gratitude. Common examples of business gifts include personalized merchandise, gift baskets, tickets to e...