Discussion:Ordinary and Necessary

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B)Karate was a hobby, before it was a business decision. Ix-Nay Arate-Kay. I know, what a cruel blow!}} B)Karate was a hobby, before it was a business decision. Ix-Nay Arate-Kay. I know, what a cruel blow!}}
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 +{{ForumReplyPost|UserID=Death&Taxes|Date=5 November 2009|Text=I would divide the dancer between costumes and street wear. A couple who were musicians told me once that 'every thing we buy is black' to which wife added 'even our underwear.'
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 +I can't go along with the karate class.....
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 +Go to our urban tax legend discussion. I think it is now on the Chat Forum. }}

Revision as of 22:17, 5 November 2009

Discussion Forum Index --> Tax Questions --> Ordinary and Necessary

NoVATaxes (talk|edits) said:

5 November 2009
I've come across these two scenarios in conversations during the last tax season and for some reason, they popped into my head this week while I'm brushing up on Sch C expenses. Now that I've found this forum of vast knowledge, I'm curious to see what your thoughts are.

First example. A self-employed dance instructor also competes in dance contests professionally. Some of her competition clothes are almost regular looking, but most are ostentatious and fit for the circus or ice dancing. Would any of you have a problem with taking a deduction on all the clothes for competition, or would you exclude the "normal" looking ones? And what about specialty jewelry that no one ought to get caught dead wearing?

Second example. A full time realtor has deducted costs for karate classes as a business expense. She claims it's for her safety on the job because (1) she's of a slight frame; (2) the houses she shows are sometimes in rough neighborhoods; (3) as part of her duties it's common for her to be in houses with strangers; (4) the Realtor Association in her area recommends having some means of self-defense. Her arguments lend weight to it being necessary, but would it be ordinary? I supposed we can't know that without doing a survey of realtors in that area. Another factor is she was taking karate classes before becoming a realtor, not because of having become one.

EasternPA (talk|edits) said:

5 November 2009
A) Diana Shore had a famous case which she won, because the gowns were so tight she could not sit down in them. In general, if costumes can only be used for performing, then they are allowed.

B)Karate was a hobby, before it was a business decision. Ix-Nay Arate-Kay. I know, what a cruel blow!

Death&Taxes (talk|edits) said:

5 November 2009
I would divide the dancer between costumes and street wear. A couple who were musicians told me once that 'every thing we buy is black' to which wife added 'even our underwear.'

I can't go along with the karate class.....

Go to our urban tax legend discussion. I think it is now on the Chat Forum.