As a content creator, your image is everything.
You’re constantly investing in new looks, thinking it’s all a deductible business expense. But are you really sure?
This is a surprisingly tricky area of tax law, and getting it wrong could mean trouble with the IRS. This post breaks down the specifics, separating fact from fiction so you can confidently manage your creator wardrobe and your taxes.
Hat tip to Jasmine DiLucci for inspring this article with her advice on writing off business clothes.
The Foundation of Tax Law (Simplified)
Tax law can seem complicated, but here’s the gist: We have the tax code (the official rules), but we need interpretations. That’s where court cases come in.
For clothing, we’re looking at what’s considered a “business expense” versus a “personal expense.” The lines can get blurry, especially for creators.
The Three-Part Test for Clothing Deductions (For Creators)
Because creators often blend their personal brand with their business, courts have a specific three-part test to determine if clothing qualifies as a deductible business expense:
- Required or essential: Is the clothing specifically needed for your content creation (e.g., a costume for a character, specific attire for a themed video, etc.)?
- Not suitable for general or personal use: This is the crucial part. Can you wear this outfit in your everyday life without it looking out of place?
- Not worn personally: Is the clothing exclusively used for your content creation?
The second requirement is where many creators run into problems. A stylish outfit you wear in a video might also be something you’d wear out to dinner.
Case Law Deep Dive: What the Courts Say (And Why It Matters to You)
Tax Court takes this test very seriously. Let’s look at some examples:
- Ralph Lauren Salesperson (Barnes v. Commissioner): Even though the salesperson was required to wear Ralph Lauren clothing in the store, the deduction was denied. Why? Because the clothes were suitable for personal use. Think about it: Would your followers bat an eye if they saw you wearing that “business outfit” in a vlog about your weekend?
- Boutique Manager (Pevsner v Commissioner): Expensive boutique clothing, required by the store, was also deemed non-deductible. The takeaway? Just because it’s expensive doesn’t make it a business expense if it’s generally wearable.
- Tennis Instructor (Mella v Commissioner): Even tennis shoes designed for the sport were denied as a deduction. This shows how strict the IRS can be.
These cases highlight a crucial point: the “suitable for general or personal use” test is objective, not subjective. It’s not about your personal style; it’s about what’s considered normal everyday wear.
When Are Clothes Deductible for Creators?
Here’s where it gets interesting for creators:
- Branding is Key: Adding a prominent logo can make clothing unsuitable for personal use. Think about it: a t-shirt with your channel’s name plastered across the front is clearly not something you’d wear to the grocery store. This can make it deductible.
- Costumes and Characters: If you create content that involves specific characters or costumes, those outfits are more likely to be deductible.
- Specialized Attire: If your content requires highly specialized clothing (e.g., a beekeeper suit for a video about honey), it’s more likely to qualify.
10 Examples of Potentially Deductible Clothing for Creators:
- A custom-made superhero costume for your web series.
- A period-specific dress for historical reenactment videos.
- Clothing with your channel’s logo prominently displayed.
- Safety gear for adventurous outdoor videos (climbing harnesses, helmets, etc.).
- Uniforms or specialized outfits for sports-related content (cycling jerseys, martial arts uniforms).
- Themed outfits for a niche cosplay channel.
- Outlandish stage costumes for a music or performance art channel.
- Protective gear for messy DIY or crafting videos (aprons, gloves, goggles).
- Motion capture suits used exclusively for animation or gaming content.
- Vintage clothing used solely for a retro fashion channel.
Common Questions
What about everyday clothes that elevate my brand but aren’t costumes? This is a grey area. It depends on how distinctive and unique the clothing is, and whether it truly can’t be worn outside of your content.
Does buying thrifted or used clothing change anything? Not really. The rules are the same, but you might need to be more careful about documenting the value of the items.
Can I deduct accessories, makeup, or hair styling products? Possibly, if they are exclusively used for your content and not suitable for everyday wear. Think stage makeup or specialized hair products.
What records do I need to keep? Keep receipts for all clothing purchases, take photos of the clothing being used in your content, and have a clear explanation of why it’s essential for your business.
What if I wear a “costume” piece in public occasionally? The IRS prefers exclusive use, but occasional personal use might be acceptable if it’s minimal. It’s best to err on the side of caution and keep detailed records.
What about clothes I buy specifically for shopping haul videos? If you return or resell the clothes, you might be able to deduct them. However, if you keep them for personal use, it becomes much harder to justify a deduction. Detailed record-keeping is essential here.
The Bottom Line for Creators
Deducting clothing requires meeting all three prongs of the test: essential for your specific content, not suitable for general use (a prominent logo can be a game-changer), and used exclusively for your creator business.
Ready to Get Clarity on Your Creator Taxes?
Don’t leave your deductions to chance. The Creator CPA specializes in helping content creators like you navigate the complexities of tax law.
We can help you maximize your deductions, stay compliant, and focus on what you do best: creating amazing content.
These tips are a starting point, but your situation is unique—make sure you’re getting the advice that’s right for you. Book a discovery call with us today.