Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: An individual, in connection with his or her wedding consulting business, purchases a tuxedo. The tuxedo is worn to weddings in connection with the individual’s business. Can a deduction or capital cost allowance be claimed in respect of the cost of the tuxedo.
Position: No
Reasons: The cost of the tuxedo is a personal or living expense.
XXXXXXXXXX 991625
M. Eisner
July 7, 1999
Dear XXXXXXXXXX:
Re: Cost of Tuxedo and Business Expenses
This is in reply to your letter received on June 8, 1999, concerning the above-noted subject.
You have indicated that you operate a wedding consulting business and that you wear a tuxedo when you are present at a wedding in connection with your business. You have asked whether the cost of the tuxedo can be deducted as a business expense.
Generally, the cost of clothing purchased by a self-employed individual, is a personal or living expense (pursuant to paragraph 18(1)(h) of the Income Tax Act (the “Act”)) unless it is acquired specifically to earn business income. A self-employed individual earning business income is only permitted to claim capital cost allowance in respect of a uniform (Class 12 of Schedule II of the Income Tax Regulations).
With respect to your circumstances, it is our view that the cost of the tuxedo is not a uniform, but a personal or living expense. Accordingly, the cost of the tuxedo cannot be claimed as a business expense.
We trust that our comments are of assistance.
Yours truly,
J.F. Oulton, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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