Is PPE Tax Deductible?
September 1, 2023
In the wake of the COVID-19 pandemic, personal protective equipment (PPE) has become essential to our daily lives. Whether it's masks, gloves, or sanitizers, acquiring these items can add up. As taxpayers, it's natural to wonder if the expenses incurred for purchasing PPE can be tax deductible. In this blog post, we'll explore the topic and shed light on the tax implications of PPE expenses.
To understand the deductibility of PPE expenses, we must grasp the general principles behind tax deductions. In most countries, including the United States, tax deductions are allowed for necessary and ordinary expenses in the course of carrying out your business or employment. These deductions can help reduce your taxable income, potentially lowering your overall tax liability.
Deductibility of PPE Expenses for Individuals:
Personal expenses, including those related to health and safety, are not tax deductible for individuals. The Internal Revenue Service (IRS) in the United States considers PPE as personal expenses rather than business expenses. As a result, the cost of purchasing PPE for personal use is not eligible for a tax deduction.
Deductibility of PPE Expenses for Businesses:
While individuals may not be able to claim tax deductions for PPE expenses, businesses have different rules that apply. For business owners, the cost of PPE can potentially be tax deductible if the expenses meet specific criteria.
Ordinary and Necessary Expenses
To be eligible for a tax deduction, PPE expenses must be ordinary and necessary for the business. This means that the expense should be standard and accepted within the industry or trade and must be helpful and appropriate for conducting business operations.
Qualified Business Expenses
PPE expenses may qualify as business expenses if they are incurred to protect employees, customers, or clients from health and safety risks associated with business operations. For example, if you own a dental clinic and purchase masks, gloves, and face shields for your staff and patients, these expenses could be tax deductible.