Question

In: Accounting

Herbert Fancypants, a popular professional golfer, has become known for the knickers (not underwear; Google/Bing it)...

Herbert Fancypants, a popular professional golfer, has become known for the knickers (not underwear; Google/Bing it) he wears in each golf tournament. This attire has become his trademark; however, he has no trademark protection under any applicable law. Nor is there any requirement under golfing rules that he wear anything other than “appropriate attire suitable to the profession.”

Are the purchase and cleaning costs of the knickers deductible to Mr. Fancypants? Please cite all resources in your research to support your conclusion

Solutions

Expert Solution

SOLUTION

Facts:

Herbert Fancypants, a popular professional British golfer, has become known for the knickers he wears in each golf tournament. This attire has become his trademark, however he has no trademark protection under any applicable law. Nor is there any requirement under golfing rules that he wear anything other than “appropriate attire suitable to the profession.”

Issues:

IRC §162 allows a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. Is the cost and maintenance expenses of the golfer’s attire deductible?

Conclusion and Reasoning:

They will likely vary in their conclusions, some holding that the costs are deductible and others holding they are not deductible. Rev. Rul 70-474, 1970-2 CB 34 held that the cost of acquisition and maintenance of uniforms is deductible if the uniform is specifically required by employment and not suitable for general and personal use. In the case of Mella, Cecil, 52 TCM 1216 (1986), the cost of tennis clothes and shoes worn by a tennis player at his employment as the head tennis pro at two private tennis clubs was disallowed because the clothes were also suitable for general and personal wear. They may also locate a more recent case [Barnes, Thomas,64 TCM 1552 (1992), affd on other issues 21 F3d 1111 (CA9, 1994)], which also held that the cost of maintaining clothing suitable for everyday wear are nondeductible. The key fact that they may use to argue the expenses are deductible is the nature of the clothing - knickers. Are knickers suitable for everyday wear? If they conclude they are, they must then conclude the expenses are not deductible. If they conclude kickers are not suitable for everyday wear, they may conclude the expenses are deductible.


Related Solutions

Herbert Fancypants, a popular professional golfer, has become known for the knickers (not underwear; Google/Bing it)...
Herbert Fancypants, a popular professional golfer, has become known for the knickers (not underwear; Google/Bing it) he wears in each golf tournament. This attire has become his trademark; however, he has no trademark protection under any applicable law. Nor is there any requirement under golfing rules that the wear anything other than "appropriate attire suitable to the professor" Are the purchase and cleaning costs of the knickers deductible to Mr. Fancypants? Please cite all resources in your research to support...
Margaret Putter is a professional golfer who has just signed a $3 million contract. The terms...
Margaret Putter is a professional golfer who has just signed a $3 million contract. The terms are five annual payments of $600,000 each. Determine the present value of the contract to Margaret, assuming her interest rate is 5%.
PLEASE READ CAREFULLY, Conduct an internet search (google, Yahoo, Bing, etc.), to find a diversity plan...
PLEASE READ CAREFULLY, Conduct an internet search (google, Yahoo, Bing, etc.), to find a diversity plan of a national (as opposed to local or regional) company. After reading it, create a post that tells us who the company is, and share something specific about it that you found surprising or interesting. At the end of your post, paste the url that we could follow if we wanted to see the plan ourselves. (When you are on the webpage that contains...
GOOGLE Started in the late 1990s, Google grew rapidly to become one of the leading companies...
GOOGLE Started in the late 1990s, Google grew rapidly to become one of the leading companies in the world. Google’s mission is “to organize the world’s information and make it universally accessible and useful.” It is operating on a simple but innovative business model of attracting Internet users to its free search services and earning revenue from targeted advertising. In the winner-takes-all business of Internet search, Google has captured considerably more market share than its next highest rival, Yahoo!. This...
23. Late in summer of 1996, Tiger Woods became a professional golfer. This highly publicized event...
23. Late in summer of 1996, Tiger Woods became a professional golfer. This highly publicized event followed a sensational college career at Stanford University, where Tiger won three United States Amateur Championships. Tiger was not a professional very long before he had his first win on the pro tour, the Las Vegas Invitational. He received a total of $297,000 for his accomplishment. The prize money (in thousands of dollars) for the top 40 finishers in the tournament are given below....
Bitcoin has become popular in some areas of the world. What is it and how does...
Bitcoin has become popular in some areas of the world. What is it and how does it work? Will you use it?
1. It has become common for professional franchise owners to threaten to move their teams to...
1. It has become common for professional franchise owners to threaten to move their teams to more supportive communities unless they are provided with a variety of benefits such as stadium funding, tax breaks, development rights, etc. Do professional franchise owners have any ethical obligations to the communities that support them? If so, what are they and are they different from those of any other business operations? 3 to 4 paragraph please I need help!!
Assume that the Samsung Galaxy smartphone has become more popular, which has increased its demand and...
Assume that the Samsung Galaxy smartphone has become more popular, which has increased its demand and decreased the demand for iPhones at the Verizon store in Dallas. This has caused the annual quantity sold of the iPhone to fall from 800 to 512. Assume that the annual carrying cost per unit for holding an iPhone in inventory is $40 and the order fixed cost is $10. The economic order quantity for the iPhone is The average inventory of iPhones is...
Billboard advertising in Times Square has become so popular that space has already been sold for...
Billboard advertising in Times Square has become so popular that space has already been sold for the next 10 years. Coca-Cola, General Motors, Toshiba, Prudential, NBC, Budweiser, and The New York Times pay rates in excess of $100,000 per month to hold these spaces. Why would companies pay so much for outdoor advertising? What are the advantages and disadvantages of purchasing billboards at Times Square?
Why has the personality-testing become so popular as a major part of an organization's recruitment process?
Why has the personality-testing become so popular as a major part of an organization's recruitment process?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT