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Are handbags tax deductible?

Rather than using a briefcase or laptop bag, many women will use their handbags to carry their laptops and business equipment. This poses the question as to whether or not handbags should be tax deductible like briefcases and satchels currently are.

Assistant Tax Commissioner Graham Whyte told Financy,“You can claim a deduction for assets that are predominantly used for work purposes, such as bags and satchels used to carry work papers or electronic devices, to the extent that such items are used for work purposes.”

Well that perfectly describes most working women’s handbags now doesn’t it?

PricewaterhouseCoopers private clients partner Paul Brassil said,“Fundamentally if you are carrying work items to and from work, be that a laptop, work papers and minor personal items, then you are in a position to claim a reasonable deduction for the cost of a handbag or manbag.”

Is there really even a difference between a briefcase for a man and a handbag for a woman if they are both using it for work purposes? Brassil advises that purchasing expensive handbags probably isn’t the best idea, as it’s not likely the ATO will fall for it but he does recommend keeping records of what you are placing in your bag.

Try your luck at tax time and see what happens, but just be cautious that no claim with the ATO is guaranteed.

Money
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