Gmt IIc tax write off?

[Aparrish]

Hi guys. I am about to be deployed back to Iraq and heard from a couple of sources that they had used the GMT watch as a tax deduction due to the time zones and no need for a battery. Have any of you heard of a tool watch being used on taxes? Thanks

[towernick]

Ask a tax professional.

[wiswrist]

... no, I don't think you can write off $7.9K for a GMT II ...

[MortgageGuy]

Is this a serious question? I think you could get a GMT watch for about $25 if necessary... Of course it will not be a Rolex though

[matt4hand]

I would say no.

Good luck if you try. I had to fight an audit for 9 months. I eventually won but it cost me a lot of time and $$$ just to prove my innocence.

[dddrees]

I know we have some funky loop holes, but I just don't see this one sorry.

[CashGap]

Any good CPA should be able to tell you "No" for under $100.

[slashd0t]

Just don't tell Obama!

[Dr.Brian]

Good luck. I'm not sure that you can even write off your uniforms anymore.

[Grumpy Badger]

I find it an interesting concept.

I wonder just where the line would be drawn as to cost/need...

I know it's not Rolex money but I had a pair of boots made for me a few years back to be used specifically in conection with my work. They cost over £1,000 and it could be argued that a pair costing £100 would have done the same job.
I asked my accountant whether it would be pushing it to try to claim them as a tax loss but was told to do it since they were designed to do my job and the additional cost could be put down to maintaing a high standard and professional image.
Is it not like a tradesman having the discretion to spend more or less on a van for his work but both the expensive and cheap models would be tax deductible?

[Watch Professor]

The IRS would tell you to get a G-Shock. No Battery? Then they would say an Eco Drive. Don't believe that this would survive an audit.

[gwalker]

I hope you don't get audited......

[oneon3putts]

Hey, you can't be late for your missions! J/K...Return safely.

[SALTY]

Unlike CashGap's lofty selection of professional advisors, I can get you a CPA, or at least someone who played a CPA before to say "No" for less than $100; but the opinion will be without papers.

Thank you for your service. Godspeed to you on your deployment. Return safe.

[Pix]

Just change GMT to gun on the receipt, just kidding be safe.

[rr-nyc]

I've never heard of a watch being tax deductible but I'm no tax expert.

The price may raise some red flags but if it's allowed, it's okay. I, Like many others, deduct a vehicle for business use and have never been told that I should drive a cheaper car.

[Taxbiker]

As a practicing CPA for nearly 30 years, I could not advise any client to try to deduct the cost of any Rolex. Most of you are on the right track concerning a cheaper option. Any IRS agent would definitely have one of those "ah ha" moments that they so long for.

I would probably NOT sign any tax return, including MINE, if a Rolex was taken as a deduction.

[Danand]

Originally Posted by rr-nyc

I've never heard of a watch being tax deductible but I'm no tax expert.

The price may raise some red flags but if it's allowed, it's okay. I, Like many others, deduct a vehicle for business use and have never been told that I should drive a cheaper car.

In Canada there are limits on the amount you can claim for tax purposes for a car. I don't know the current amounts but it used to be $700 per month (plus taxes) for leasing or $25000 for purchase. So yes you could be told to get a cheaper car.
A rolex- can't see it happening in Canada unless there is a fake receipt with a different description ( eg some sort of fancy timing device). But if you are audited and the invoice is fake it becomes not just a tax issue but a criminal one also.

[JustABreathAway]

I was hoping to deduct a $26K Day Date II for purposes of timing medication delivery and time to efficacy in the OR as I'm an anesthesiologist. My CPA's told me no, so I will have to buy it out right.

Of course, to spend $26K I have to earn $52K prior to taxation - remind me again who says those of us in the top 1% don't pay our fair share?

[wcl884]

Originally Posted by JustABreathAway

I was hoping to deduct a $26K Day Date II for purposes of timing medication delivery and time to efficacy in the OR as I'm an anesthesiologist. My CPA's told me no, so I will have to buy it out right.

Of course, to spend $26K I have to earn $52K prior to taxation - remind me again who says those of us in the top 1% don't pay our fair share?

That incremental tax rate just seems too high. I don't know how you are getting to the 50% rate. Even if you live in California with Federal, State, "City tax" - that is too high. By the way, many people lust after the possibility to buy a DDII, just be grateful you have an ability to buy it without challenges or imposing a lifestyle change.

*Rant Start* You don't have to pay taxes or earn the level of income that gets you to the "50% tax bracket" and you can choose another profession or live in another State or Country, but you chose to be where you are today and chose a profession that pays you what you are getting. We are still allowed to make some choices today as a person. I'm not happy at the ways our taxes are used today - I think they can be used more efficiently. I'm also not happy that I have to pay more taxes than someone who makes the same amount but with 4 kids, but I will be happy to pay more taxes because I am making more money than last year, or someone who lives below the poverty line and pays no taxes. Step up and do what you can for this world that gave you an opportunity to earn a great salary and buy a DDII. *Rant Stops*

[brettpaul]

Originally Posted by wcl884

That incremental tax rate just seems too high. I don't know how you are getting to the 50% rate. Even if you live in California with Federal, State, "City tax" - that is too high. By the way, many people lust after the possibility to buy a DDII, just be grateful you have an ability to buy it without challenges or imposing a lifestyle change.

*Rant Start* You don't have to pay taxes or earn the level of income that gets you to the "50% tax bracket" and you can choose another profession or live in another State or Country, but you chose to be where you are today and chose a profession that pays you what you are getting. We are still allowed to make some choices today as a person. I'm not happy at the ways our taxes are used today - I think they can be used more efficiently. I'm also not happy that I have to pay more taxes than someone who makes the same amount but with 4 kids, but I will be happy to pay more taxes because I am making more money than last year, or someone who lives below the poverty line and pays no taxes. Step up and do what you can for this world that gave you an opportunity to earn a great salary and buy a DDII. *Rant Stops*

*New Rant Begins* How about this...you don't live in the US, have not lived in the US for the past 4 years, have not visited your home country for more than 30 days every 2 years, yet each year at tax time I have the honor of writing a check to my favorite Uncle for the tax I owe after my 'foreign income tax credit so I can keep my blue passport!! How about them apples!!

This is not the case for European citizens....can anyone explain???!! *Rant Stops*

[iraden]

Originally Posted by wcl884

*Rant Start* You don't have to pay taxes or earn the level of income that gets you to the "50% tax bracket" and you can choose another profession or live in another State or Country, but you chose to be where you are today and chose a profession that pays you what you are getting.

You're absolutely right. And there is a threshold, which we are rapidly approaching, when people will decide to choose another profession or not work as hard. That is what is really scary.

De-incentivizing hard work and advanced education is not wise, and is not a good direction for this country in my opinion.

[Timber Loftis]

Originally Posted by JustABreathAway

Of course, to spend $26K I have to earn $52K prior to taxation - remind me again who says those of us in the top 1% don't pay our fair share?

Um, me. And Warren Buffett. And there is no 50% tax bracket, though there was back when that venerable paradigm of conservativism Ronnie Reagan was running the show.

Anyway, don't you need to be self-employed to be deducting ordinary and necessary business expenses to begin with?

[rr-nyc]

Originally Posted by Timber Loftis

Um, me. And Warren Buffett. And there is no 50% tax bracket, though there was back when that venerable paradigm of conservativism Ronnie Reagan was running the show.

Anyway, don't you need to be self-employed to be deducting ordinary and necessary business expenses to begin with?

No, you can be a W2 employee of a company and still have unreimbursed business expenses that are tax deductible. Again, I'm not saying a Rolex is one of them but there are a considerable amount of allowable deductions

[rr-nyc]

Originally Posted by Danand

In Canada there are limits on the amount you can claim for tax purposes for a car. I don't know the current amounts but it used to be $700 per month (plus taxes) for leasing or $25000 for purchase. So yes you could be told to get a cheaper car.
A rolex- can't see it happening in Canada unless there is a fake receipt with a different description ( eg some sort of fancy timing device). But if you are audited and the invoice is fake it becomes not just a tax issue but a criminal one also.

I think there is a max for deducting lease payments but i dont know since I only buy. I have not only deducted the use of my cars, i have depreciated them too ( in the past since I don't want or need a car now) on my personal income tax. My range rover sport was the best or that

[B. Doggy]

Let us know what line item you place that on in your tax return.

[Perdu]

Wishful thinking me thinks.

[wcl884]

Brettpaul, this is why I love this forum - the free exchange of ideas and sharing of different point of views.

I have lived/worked overseas for several years and my employer was nice enough to pay parts of my overall tax payments (so I'm net-neutral as if I'm paying only US taxes and not double-taxed by foreign government too).

However, as I mentioned before, you have a choice as to relinquishing your US passport and citizenship so to avoid paying US taxes. The team I work with, no one did that because we all enjoy the protection of the US Passport & US State Department when traveling abroad - especially at the risk of having our workplace stormed by foreign nationals.

For the tax savings you get, you may end up paying more protection or riders on your personal insurance.

[JP Chestnut]

Originally Posted by wcl884

Brettpaul, this is why I love this forum - the free exchange of ideas and sharing of different point of views.

I have lived/worked overseas for several years and my employer was nice enough to pay parts of my overall tax payments (so I'm net-neutral as if I'm paying only US taxes and not double-taxed by foreign government too).

However, as I mentioned before, you have a choice as to relinquishing your US passport and citizenship so to avoid paying US taxes. The team I work with, no one did that because we all enjoy the protection of the US Passport & US State Department when traveling abroad - especially at the risk of having our workplace stormed by foreign nationals.

For the tax savings you get, you may end up paying more protection or riders on your personal insurance.

I'm not sure a US passport is the hot travel item it once was.

[JustABreathAway]

"50% tax bracket" - 35% federal plus 8% state plus 7% local does indeed equal 50% of every marginal dollar I make being confiscated by government.

And that's before I pay my employees and the various consultants it takes to make sure that I don't run afoul of government regulations while I'm just trying to, ya know, keep people alive when they'd otherwise be dead and bring them back from death in the event that they do die.

So yes, my top marginal rate is well over 50%, thank you very much.

And no, I don't make anywhere near what Buffet does.