A small business owner claimed tax write-offs of:

• $1,800 for haircuts and manicures

• $2,569 for gym memberships

• $830 for cell phones

• $4,615 for clothing

• $278 for laundry

But the IRS audited them and claimed these are not business expenses.

Who was right?

The case is Tilman v. United States, 644 F. Supp. 2d 391.

Many things were covered in the case but I'm going to focus squarely on the above deductions.

Here's what the court had to say about each expense:

$1,800 for haircuts and manicures.

"Haircuts are nondeductible personal expenses even when required as a condition of employment.

The same is true for manicures, because such expenses are inherently personal in nature and suitable for general occasions."

$2,569 for gym memberships

"Participation in a weight loss program can be a deductible expense when it is done for medical reasons, however, taxpayer's membership to a weight loss club is not a deductible expense. It is a personal expense.

The cost of an individual's participation in a weight reduction program that is not for the purpose of curing any specific ailment or disease, but for the purpose of improving the individual's appearance, health, and sense of well being, is not deductible as a medical expense."

 $830 for cell phones

"Taxpayers are not entitled to deduct expenses for cellular phone usage, since they failed to provide sufficient evidence to corroborate their assertion that the cell phone was used for business purposes."

$4,615 for clothing

"For clothes to be deductible, they 'must be of a type specifically required as a condition of employment, and they must not be adaptable to general usage as ordinary clothing.'

Taxpayer's own description of the outfits she buys suggests that they do not qualify for a deduction. Beautiful gowns and cocktail dresses are a staple in many women's closets, as are earrings, necklaces, bracelets, brooches, rings, and watches. Her belief that she can only wear these items when she attends concerts and not in any other setting is irrelevant.

As long as other people would wear such clothing in a variety of settings, the clothes are not deductible."

 $278 for laundry

"These expenses are not deductible for the same reasons the outfits themselves are not deductible."

The next time you see TikTok tax advice saying any of these are deductible, point them back to this post!