Some Expenses Are Too Personal to Deduct on Your Tax Return


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Some Expenses Are Too Personal to Deduct on Your Tax Return

	Summary: Article explains what expenses are inherently personal and therefore not deductible as a business expense.

The actor explained: "I had a hiss when I used the letter's'. You cannot hiss in the moving picture business. You must enunciate clearly, and when you don't, you don't work. The teeth I had were satisfactory, for every other purpose, except for my hiss."

Edward A. Sparkman's new false teeth eliminated the hiss and restored perfect enunciation. He bought two sets in case he damaged one while filming. The California resident deducted as a business expense the cost of his upper false teeth.

One appeals court judge would have allowed the deduction, saying the dentures eliminated the hissing, which interfered with the taxpayer's work performance and would have cost him his job. Still, the court majority disallowed it, by a two to one vote, because the expense was too personal. It's difficult to imagine "anything more personal than a set of false teeth."

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Expenses that might otherwise qualify as a business deduction are disallowed if they are too personal. But which ones are too personal?

Another court ruled on whether a hearing aid was too personal. Paul Bakewell Jr. of St. Louis said it was necessary for his law practice, so he deducted it as a business expense.

He didn't deduct it as a medical expense, however, because it wouldn't reduce taxable income; medical expenses were below the amount excluded at his income level.

The judge planned to disallow it because the hearing aid was too personal. Bakewell challenged the judge saying another court allowed Reginald Denny's bridgework.

Denny had worked as an actor for Universal Pictures. While making a fight picture, four upper and three lower teeth were knocked out.

The Bakewell judge said that was different. In Denny, the actor damaged his teeth while working, so it was job related. The judge added that although the hearing aid was necessary for the law practice, it's inherently personal.

Other items ruled too personal include a saleslady's dress, an accountant's glasses, shoeshine for an airline pilot and haircuts for a TV anchorman. It's sometimes difficult to decide if an expense is too personal because the courts refrain from giving a definition. You can get a clue, however, from some judges who gave importance to whether or not the item was used off the job. If it wasCthen no deduction.(more at Other Deductions)

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Released 4-8-02