## Facts

- Sandra J. Pevsner managed an Yves St. Laurent “Rive Gauche” boutique that sold only YSL women’s apparel and accessories.
- Her employer required her to wear YSL clothing at work to project the boutique’s image and demonstrate familiarity with current merchandise.
- In 1975, she bought YSL items at an employee discount for $1,381.91 and spent $240 on maintenance (total $1,621.91).
- The clothing was fashionable and expensive, and boutique customers wore similar items for daily activities.
- Pevsner lived a simple, informal lifestyle and did not wear the YSL clothing outside of work; the parties stipulated this fact.
- On a joint 1975 return, the Pevsners deducted the purchase and maintenance costs as “ordinary and necessary” business expenses under I.R.C. § 162(a).
- The Commissioner disallowed the deduction, asserting the clothing was suitable for general or personal wear.
- The Tax Court allowed the deduction using a taxpayer-specific approach focused on Pevsner’s lifestyle; the Commissioner appealed.

## Issues

1. Whether work-required clothing expenses are deductible under I.R.C. § 162(a) when the clothing is objectively suitable for ordinary wear, despite the taxpayer’s nonuse outside work.
2. Whether “adaptable to general usage” in the work-clothing deduction test is determined by an objective standard or by the taxpayer’s subjective lifestyle and actual use.

## Decision

- The Fifth Circuit reversed the Tax Court and disallowed the deduction.
- The court applied the commonly used three-part test for clothing deductions: (1) required as a condition of employment, (2) not adaptable to general usage as ordinary clothing, and (3) not worn for general use.
- The court held the “adaptable to general usage” prong must be evaluated objectively, not by a taxpayer-specific lifestyle inquiry.
- Because YSL apparel of the type purchased was worn by customers as ordinary street wear, it was objectively adaptable to general usage; the deduction failed even though Pevsner did not wear the items off-duty.

## Legal Principles

- Clothing costs are deductible under I.R.C. § 162(a) only if the clothing is (1) specifically required as a condition of employment, (2) not adaptable to general usage as ordinary clothing, and (3) not worn for general use.
- “Adaptable to general usage” is determined by an objective standard based on the nature of the clothing, not on the taxpayer’s personal tastes, lifestyle, or actual off-duty use.
- Employer requirements and exclusive on-the-job use do not make clothing deductible if the items are objectively suitable for ordinary personal wear.
- An objective standard supports consistent administration and avoids different tax outcomes for similarly situated taxpayers wearing the same type of clothing.

## Conclusion

The Fifth Circuit held that Pevsner’s YSL wardrobe and maintenance costs were not deductible business expenses because the clothing was objectively adaptable to ordinary personal wear, making the expenses personal rather than deductible under I.R.C. § 162(a).


Pevsner v. Comm'r, 628 F.2d 467 (5th Cir. 1980)