For most fashionistas, the dream is to become a brand representative. A brand representative is somebody who is paid by a range of stores and fashion labels to be seen wearing their brand’s, designs, and outfit choices. What a dream job that would be!
The biggest challenge faced by most of these fashionistas is getting to the level where they are publicly noticed for their fashion, either on social media or any other fashion outlets. Of course, the best way to get noticed is to always look your best. However, this often comes at a cost too high for most fashionistas.
If this sounds like you and you are considering giving up the idea of being a professional fashionista, below are some great tips on how you can use your fashion expenses to lower your taxes to help you get started.
If you are a model, be sure that you register yourself as an appropriate entity. The same tip applies if you are a clothes designer, stylist, or even somebody who gives fashion tips on the internet, register yourself as a business so that you can begin to claim your expenses.
When you are registering, it is important that you are truthful on your application. If this means that you need to make changes to your situation before you can take advantage of tax breaks, make the changes before registering.
Now that you are registered, you can begin to look at the types of items which you can claim against your tax bill. And while it is unreasonable to expect that you can claim the entirety of your morning routine against your taxes, there are a number of items which you can, as long as you use them for your business, such as:
- Hair styling products
- Hair care products
- Makeup removers
- Makeup brushes and applicators
- Internet access
- Computer equipment
If you incur any of these expense during the operation of your newly formed business then you can look to claim items such as these. However, when you are claiming these items, it’s important that you apportion them. For example, if you only use the internet access for your new business for a small period of your total monthly internet time, then you can only claim that percentage of your internet bill.
Keep Your Receipts
Did you buy makeup remover to use on your Youtube channel? Keep the receipt. Did you buy a new outfit from the Groupon Coupons page for Nordstrom Rack to show all of your viewers on Facebook? Keep the receipt. How about those makeup remover pads which you reviewed on Twitter? Keep the receipts! If you spend anything on your business expenses then it’s important that you keep the receipt for at least 3 years.
While you may not have reached the fashionable heights that you one day aspire, it doesn’t mean that you can’t benefit from the same types of tax breaks and benefits which are available to already established businesses. Along with these tips, be sure to speak with a business tax professional who can provide you with further guidance on claiming business related expense against your tax.