1. Shoeshine expense of a pilot. Company rules required a commercial airline pilot to look neat, keep his hair cut, and wear conservative black shoes, properly shined. The pilot deducted as a business expense $100 for his haircuts and $25 for his shoe shines. The IRS disallowed the deductions, but the Tax Court allowed the cost of the shoe shines. The shoes were of a military type which he wore only with his pilot’s uniform. The cost of keeping up a uniform is deductible. The haircuts were merely nondeductible personal expenses.

2. Depreciation on furnishings bought by executive for his company office. Following a quarrel with an interior decorator, a sales manager bought his own office furniture when his firm moved to new quarters. Rather than complain or ask for reimbursement, he footed the bill and deducted depreciation. The IRS disallowed the deduction, claiming the expense was that of his company. The Tax Court allowed the deduction. The manager’s action was unusual, but prudent. He did not want to cause difficulties, and at the same time had to maintain his image as a successful manager. His expenses for furniture were appropriate and helpful.

3. Salesman’s cost of operating a private plane. Sherman flew his own plane to visit clients in six southern states and deducted $18,000 as operating costs of the plane. The IRS disallowed the deduction, claiming there was no business reason for the plane. He could have taken commercial flights or used a company car to reach his clients. Furthermore, his company did not reimburse him for the private airplane costs, although it would cover costs of his car and commercial air travel. Finally, the amount of airplane expenses was unreasonable compared to his salary of $25,000. Sherman convinced the Tax Court that use of a private airplane was the only reasonable way he could cover his six-state sales area. He showed that most of his clients were not near commercial airports. Although the airplane costs were large in relation to his salary, they were still reasonable and, therefore, deductible.

4. Executive’s purchase of blazers for sales force. Jetty, the president of an oil equipment manufacturing firm, thought that he could generate goodwill for the company if employees who attended industrial trade shows wore a blazer and vest set in the company colors. He personally paid and deducted $6,725 for 27 blazers and vests. The IRS disallowed the deduction on the grounds that it was a company expense and that Jetty should have sought reimbursement from the company.

5. Repayment of layoff benefits to restore pension credit. When he was laid off, an employee received a lump-sum payment from his company based on his salary and years of service. When he was rehired a year later, he repaid the lump sum in order to restore his pension credits and other benefit rights. The IRS ruled that he may deduct the repayment as a condition of being rehired; the repayment was required to restore employee benefits.

6. Politician’s expenses. Elected officials may incur out-of-pocket expenses in excess of the allowances received from the government. They may deduct as miscellaneous deductions their payment of office expenses such as salaries, office rent, and supplies. Part-time officials may claim the deduction. The expenses are deductible even if they exceed the official’s income.

7. Depreciation for exotic dancer’s breast implants. Hess, an exotic dancer, enlarged her breasts to the abnormal size of 56N and claimed a $2,088 depreciation deduction for their cost. The IRS disallowed the deduction, claiming that cosmetic surgery is a personal expense. The Tax Court disagreed. Hess’s expenses were incurred solely in furtherance of her business and not for her own personal benefit. The breast implants were not of the kind that women usually get to enhance their appearance. Rather, Hess enlarged her breasts to a “freakish” size to substantially increase her annual income, which she did. The court also compared the implants to special work clothes (19.6), required for a job and not for personal wear. As an exotic dancer, Hess’s large breasts are like a “costume” needed to keep her job. Although she could not remove them daily, she would have, if possible, because they caused her serious medical problems.