How to deduct your gym clothes?

Imagine if you could take a tax write-off for your athletic clothes?

As a fitness business owner...creating a workout video or just exercising...you have an opportunity to pay less tax with your fashion sense!

HOW DOES FASHION ADVICE LOWER YOUR TAXES?

According to the IRS, work clothes can only be deducted when they can NOT be used/worn outside of work.  This has traditionally meant safety equipment and specific uniforms.  

However, promotional and marketing expenses are reasonable deductions. 

CONVERTING WORKOUT GEAR IN MARKETING EXPENSES:

Adding your logo to clothing, makes them tax deductible!  The logo must be clearly visible and prominently displayed.  This tax deduction extends to both the purchase of your gym gear AND the expense to add the logo!  

IMPORTANT NOTE: 

Clothing and dry cleaning deductions are considered a “red flag” by the IRS.  So please consult your Tax Professional about the detailed records and documentation you need to keep on file if the IRS questions the deductions.

CONCLUSION:

As a Fitness Entrepreneur, there are many tax advantages available to you that are not available to trainers that work as an employee.  You should ask your accountant or financial professional to have a conversation about how 2020 can be the year you pay Uncle Sam as little as possible! If you would like to discuss tax saving ideas specific for you company, please email me to setup a conversation.

Best

Pat

(Disclaimer:  This is meant to be educational and not tax advice for your specific fitness business.  Please consult a qualified tax professional before making any changes to your tax deductions.)