Can you write off a Rolex?

[attakhansmarty]

Even if Rolex was a qualifying charitable organization, you wouldn't be able to deduct the purchase price of the watch. ... In the case of Rolex, if you buy a watch for $10,000 at retail, the fair market value of that watch is considered $10,000, and you receive no deduction.

[Thebuzz]

If you are an influencer you can. But you’d have to review on your TicToc feed


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[ThatSubGuy]

Originally Posted by Thebuzz

If you are an influencer you can. But you’d have to review on your TicToc feed


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Boomer confirmed

[904VT]

Originally Posted by ThatSubGuy

Boomer confirmed

I don't think it's only Boomers that are smart enough to avoid the TicToc tracking machine. Lots of younger folks avoid too the platform for poor taste (looking at you dancing nurses that don't understand time and place). I mean why not broadcast via video your personal life. One day you may be......wait for it.......a social media star!

Boomers vs Millennial it's getting very tiresome for the rest of us with the drama. With Boomers and Millennials thinking they run everything

[SS Oyster]

Originally Posted by Thebuzz

If you are an influencer you can. But you’d have to review on your TicToc feed


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I don’t think the IRS would allow you to claim the value of say a Rolex Submariner LV, review it, and claim “I had to buy it to review it, so it now has no value, so I can claim it as a loss”. Sorry, you cannot even as a business expense and depreciate something that actually appreciates in value.

Now, if you buy the LV for $10k to review, then sell it at a loss for say $8k, you could claim the $2k loss, but that wouldn’t happen with an LV Sub. As a matter of fact, you would sell it for say $18k and be required to claim an $8k gain, and unless you kept it for some length of time (can’t recall if 1 or 2 years), you would have to claim all $8k as normal income.

If you rent a watch for a few days from a dealer in order to review, that’s also a legitimate business expense.

The IRS isn’t stupid.


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[ThatSubGuy]

Originally Posted by SS Oyster

I don’t think the IRS would allow you to claim the value of say a Rolex Submariner LV, review it, and claim “I had to buy it to review it, so it now has no value, so I can claim it as a loss”. Sorry, you cannot even as a business expense and depreciate something that actually appreciates in value.

Now, if you buy the LV for $10k to review, then sell it at a loss for say $8k, you could claim the $2k loss, but that wouldn’t happen with an LV Sub. As a matter of fact, you would sell it for say $18k and be required to claim an $8k gain, and unless you kept it for some length of time (can’t recall if 1 or 2 years), you would have to claim all $8k as normal income.

If you rent a watch for a few days from a dealer in order to review, that’s also a legitimate business expense.

The IRS isn’t stupid.


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Sure you can. Write it off as an on-going marketing tool used to reach a certain audience. The IRS doesn't decide how you choose to run and market your business.

Of course you must be able prove that it's used in business related campaigns and not for personal use.

It could also be used as part of your business attire when meeting clients to project a successful image. Just like you're able to write off business clothing.

[watchtabs]

Originally Posted by ThatSubGuy

Sure you can. Write it off as an on-going marketing tool used to reach a certain audience. The IRS doesn't decide how you choose to run and market your business.

Of course you must be able prove that it's used in business related campaigns and not for personal use.

It could also be used as part of your business attire when meeting clients to project a successful image. Just like you're able to write off business clothing.

Have you filed US taxes? With an actual CPA?

[Devildog]

Originally Posted by watchtabs

Have you filed US taxes? With an actual CPA?

He's from Belgium, so probably not

[GoingPlaces]

Originally Posted by watchtabs

Have you filed US taxes? With an actual CPA?

Not in the US he hasn’t.


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[Mendota]

Originally Posted by ThatSubGuy

It could also be used as part of your business attire when meeting clients to project a successful image. Just like you're able to write off business clothing.

No, this has been repeatedly tested in court and has failed. Tread extremely carefully with this. My CPA told me under no circumstances would anyone recommend trying this. Uniforms or very specific things of that nature, which are required for work are allowed, but buying suits and other things like that are not. The job has to specifically require you to wear a uniform to perform the job duties. That's why scrubs and uniforms are allowed.

[Devildog]

Originally Posted by SS Oyster

I don’t think the IRS would allow you to claim the value of say a Rolex Submariner LV, review it, and claim “I had to buy it to review it, so it now has no value, so I can claim it as a loss”. Sorry, you cannot even as a business expense and depreciate something that actually appreciates in value.

Now, if you buy the LV for $10k to review, then sell it at a loss for say $8k, you could claim the $2k loss, but that wouldn’t happen with an LV Sub. As a matter of fact, you would sell it for say $18k and be required to claim an $8k gain, and unless you kept it for some length of time (can’t recall if 1 or 2 years), you would have to claim all $8k as normal income.

If you rent a watch for a few days from a dealer in order to review, that’s also a legitimate business expense.

The IRS isn’t stupid.


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In the UK you probably could, under annual investment allowances/capital allowances. Just like any asset purchased for your business. The fact its an appreciating or depreciating "asset" makes no difference.

As an appreciating asset you'd apply the entire cost as an expense. When you sold it (if you sold it) you'd then have to account for the entire sale price.

You'd also have to be prepared to convince our tax authorities that it was purchased wholly for the purpose of your business, which might be difficult if you were a watch collecting vblogger or similar.

[Sunny Arizona]

Originally Posted by Thebuzz

If you are an influencer you can. But you’d have to review on your TicToc feed


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Yep!

[watchtabs]

First dodgy post

[MichaelFlash]

Originally Posted by watchtabs

First dodgy post

Lol

[Thebuzz]

I’m not saying it’s right… I am saying the I am 100% sure it’s being done. Anything that is purchased to drive views… is a marketing expense or prop. The “business owner” gets to choose how they carry over the value as a depreciating asset business or one time cost. It’s most obvious with car vlogging community.


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[watchtabs]

Originally Posted by Thebuzz

I’m not saying it’s right… I am saying the I am 100% sure it’s being done. Anything that is purchased to drive views… is a marketing expense or prop. The “business owner” gets to choose how they carry over the value as a depreciating asset business or one time cost. It’s most obvious with car vlogging community.


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And 100% sure it won’t fly under an audit. Unless you are a dealer buying and selling.. buying a gold Rolex to seem successful in a business setting will only get you successfully into trouble with the IRS. Let alone the fines.

[ThatSubGuy]

Originally Posted by watchtabs

And 100% sure it won’t fly under an audit. Unless you are a dealer buying and selling.. buying a gold Rolex to seem successful in a business setting will only get you successfully into trouble with the IRS. Let alone the fines.

With that logic, you aren't allowed to rent an expensive location for your business.

And you can't lease an S class, it's too expensive. You must lease compact cars only.

You also can't spend more than €100 on ad campaigns per month.

[watchtabs]

Originally Posted by ThatSubGuy

With that logic, you aren't allowed to rent an expensive location for your business.

And you can't lease an S class, it's too expensive. You must lease compact cars only.

You also can't spend more than €100 on ad campaigns per month.

No dude. Stop giving Tax advice.

Same to the OP go ask a CPA not strangers in a forum about tax advice.

[dannyp]

Originally Posted by watchtabs

And 100% sure it won’t fly under an audit. Unless you are a dealer buying and selling.. buying a gold Rolex to seem successful in a business setting will only get you successfully into trouble with the IRS. Let alone the fines.

Originally Posted by ThatSubGuy

With that logic, you aren't allowed to rent an expensive location for your business.

And you can't lease an S class, it's too expensive. You must lease compact cars only.

You also can't spend more than €100 on ad campaigns per month.

I think there are a few key differences:

1. Office space and cars are generally accepted business expenses. While there are certainly exceptions, I doubt as much attention is paid to what budget is allocated to those as long as they are being used for business purposes. Watches aren't seen that way.

2. The offices and cars being discussed are leased. Monthly expense for monthly use. While companies obviously sometimes purchase real estate or vehicles as capital expenditures, I doubt that's done in this context. So, if someone were to lease a watch to wear for business meeting where posturing is necessary, maybe that would be more easily justified?

[Jrsanchez]

Originally Posted by ThatSubGuy

With that logic, you aren't allowed to rent an expensive location for your business.

And you can't lease an S class, it's too expensive. You must lease compact cars only.

You also can't spend more than €100 on ad campaigns per month.

Yup all my Rolexs we’re bought by the biz.

[drrd]

(UK) Watches are exempt from capital gains tax after fifty years - the presumed lifespan of the item.

[LooseCann0n]

Originally Posted by drrd

(UK) Watches are exempt from capital gains tax after fifty years - the presumed lifespan of the item.

They’re actually exempt from capital gains tax at any time - BECAUSE they have a limited lifespan and hence classified as machinery.
Unless you are buying and selling watches as a business.


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[drrd]

Originally Posted by LooseCann0n

They’re actually exempt from capital gains tax at any time - BECAUSE they have a limited lifespan and hence classified as machinery.
Unless you are buying and selling watches as a business.


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Well you know, buy it, sell it, make some money...depends if it gets noticed and what your status or your excuse is.

50+ years and there's nothing to discuss or explain, at least that was my understanding.

[joejet]

Originally Posted by drrd

Well you know, buy it, sell it, make some money...depends if it gets noticed and what your status or your excuse is.

50+ years and there's nothing to discuss or explain, at least that was my understanding.

Possessions with a limited lifespan

You don’t have to pay Capital Gains Tax on personal possessions with a lifespan of less than 50 years. This covers all machinery, and includes things like antique clocks or watches.

From:-

https://www.gov.uk/capital-gains-tax...mited-lifespan

[joejet]

Originally Posted by LooseCann0n

They’re actually exempt from capital gains tax at any time - BECAUSE they have a limited lifespan and hence classified as machinery.
Unless you are buying and selling watches as a business.


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WOW well that changes my collection, and gives me more justification to my wife that my collection being a tax free investment i’d for her future and maybe I can convince her to allow me to buy a few more :)

[LooseCann0n]

Originally Posted by joejet

WOW well that changes my collection, and gives me more justification to my wife that my collection being a tax free investment i’d for her future and maybe I can convince her to allow me to buy a few more :)

Any way that works - I know my wife is less concerned about my watch expenditures since I have mentioned that the value is instantly available should we ever need it… usually at an increased level compared to purchase price… and without using our capital gains tax allowances!


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[ks58]

Interesting questions. I didn’t think they would be but guess for some they are.

[peterpl]

I'm sure many watch reviewers online and on youtube, instagram that actually make a business of it would be claiming the cost of these watches as a business expense.

Its the same for guys reviewing laptops/phones and other tech. You would have to have a company, lodge tax returns and be able to show that you generate a full income to offset the cost through that company.

Of course you cant make money off the tax man. If you make $0 income and pay $0 tax you cant claim anything on the cost of the watch. The government aint that stupid. LOL

[Brew]

Hypothetical question, smells of tax fraud. I cannot.

[brandrea]

Originally Posted by Brew

Hypothetical question, smells of tax fraud. I cannot.