Question

59. Louella was born into a low-income family and lives in a poverty-stricken neighborhood. She recently landed a job as wardrobe consultant at High Fashions Ltd., a retailer of expensive women’s clothing at an Elm Grove shopping mall. Can Louella claim a § 162 business expense deduction on her federal income tax return for the cost and upkeep of the expensive Yves St. Laurent outfits that she is required to wear on the job?

Answer 1

Under the IRS publications 529 "miscellaneous deductions" a maximum of 2% can be claimed as deductions. but a key condition is that this expense can only be claimed as a deduction if the work clothes are unsuitable to wear in casual settings for example for delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes and transportation workers etc..

since an outfit at a wardrobe consultant can also be used for everyday wear.

Therefore, Louella cannot claim the deduction.