candycorn
Diamond Member
- Aug 25, 2009
- 110,826
- 50,994
If you use a product you cannot write it off twice. It's no different than using a perishable good off the shelf. If i own a convenience store and use a carton of cream for the coffee station I can only write off the cost of the cream once. if I make less profit on that one carton of cream I cannot call that a loss and write it off again.
Using a product wasn't an issue. An ex-employee not returning a uniform was the issue. That's loss.
If you provide uniforms for staff all you can write off is the cost of the uniform. You cannot write it off again if that uniform gets stolen or damaged.
Someone breaks into a company truck and steals tools and I have no deductible loss? Really? My CPA would have issue with that.
Now on the other hand the uniforms can be considered an employee benefit and the employees may be liable for taxes as the value of the uniforms can be counted as income.
Not if the uniform must be returned.
Would you want to wear a recycled uniform? Just curious...ewww