Rolex write off on your taxes

[leopardprey]

Anyone here write their Rolex purchase off on their taxes as a bussiness expense? I am thinking of writing my purchase off. Being that I needed a high quality precise time piece to conduct operations here for my job in Iraq.

[ginzo]

Don't you get a waiver from federal taxes in a Combat Zone? Stay safe!

[tonyp]

NOPE, but one unfortunate year I gave my Rolex to the tax man

[montecristo]

This is just asking for trouble.

[Blue Bull]

Taxman is not stupid.They can argue that for the sake of its purpose,you dont really need a $$ Rolex.Worth a try,if your tax matters, are in order ...Dont exactly know how your tax system works,but ,I guess they can only reject it.

[leopardprey]

Do not get tax exemption for being in Combat region, only US Military personnel do. I am a civlian, under contract with Dept of Army/Dept of Defense. If you stay out of the USA, for 330 days within a 365 day period, you are exempt from Federal Income Taxes for the first $80,000. Must pay regular taxes on all your earnings over $80,000.

Will have a CPA do my taxes and write off all my bussiness expenses. Several years ago I was able to write off several thousand dollars of tactical gear I bought, and several firearms I bought for training purposes, since it is related to my employment.

Probably will not try to write off 2 Rolex watches, just one.

[Blue Bull]

Originally Posted by leopardprey

Do not get tax exemption for being in Combat region, only US Military personnel do. I am a civlian, under contract with Dept of Army/Dept of Defense. If you stay out of the USA, for 330 days within a 365 day period, you are exempt from Federal Income Taxes for the first $80,000. Must pay regular taxes on all your earnings over $80,000.

Will have a CPA do my taxes and write off all my bussiness expenses. Several years ago I was able to write off several thousand dollars of tactical gear I bought, and several firearms I bought for training purposes, since it is related to my employment.

Probably will not try to write off 2 Rolex watches, just one.

Do you have to pay tax in Iraq ?

[leopardprey]

Do not pay taxes in Iraq. My paycheck comes from the US and is deposited into my US Bank account and I am based on a US base. I do still pay social security tax, medicare tax, state tax, county tax and federal income tax on anything earned over $80,000 (minus my deductions).

[Blue Bull]

Originally Posted by leopardprey

Do not pay taxes in Iraq. My paycheck comes from the US and is deposited into my US Bank account and I am based on a US base. I do still pay social security tax, medicare tax, state tax, county tax and federal income tax on anything earned over $80,000 (minus my deductions).

For that amount above $80k,whats your total combined tax as a percentage of your bruto income ? Just as a matter of interest,since I am not a US citizen.I know your State tax vary from State to State,NY expensive,Arizona much better.

Here I pay 40% tax + 14% VAT(Value added tax) on my income from my practice,less deductions.

[leopardprey]

Here is a link to a table showing the Federal Income rates for taxable income:


http://www.irs.gov/formspubs/article...150856,00.html

[jimcameron]

I've known some who did and there were no problems.....but that was quite a few years ago and things were a lot cheaper. The CPA should be able to guide you.

[Blue Bull]

Originally Posted by leopardprey

Here is a link to a table showing the Federal Income rates for taxable income:


http://www.irs.gov/formspubs/article...150856,00.html

Thanks for the link,very informative ...

The old dictum... Only certainties in life are death and taxes !! The one with the hammer is the taxman

[jac67]

I am in Oz, so I don't know how relevant this is, but I'd think that generally things are similar.

Here in Oz, the underlining issue whether an expense is deductible is if the expense is incurred in the prodiuction of your assessible income.

If it qualifies, then the tax man has no right to disallow the deduction based on cost. There are certain limitations wrt motor vehicles, but as to whether you travel first class, wear a Rolex etc., no limits AS LONG AS you are entitled to claim the expense. This is where you may come unstuck!

A professional diver could buy a cheap divers watch, but may elect to buy a Submarimer - no problem with claiming that, even if he/she bought it in solid gold! Maybe even a Comex!!!!!

Pilots and GMT, production managers or racecar pit crew and Daytona.

Even accountants and lawyers who charge in 6 minute increments may get away with a Sub, SD or even Daytona - INTERESTING....................... (now that's stretching it a bit, but maybe worth fighting?).

Good luck & Godspeed


John.

[tonyp]

Originally Posted by jac67

I am in Oz, so I don't know how relevant this is, but I'd think that generally things are similar.

Here in Oz, the underlining issue whether an expense is deductible is if the expense is incurred in the prodiuction of your assessible income.

If it qualifies, then the tax man has no right to disallow the deduction based on cost. There are certain limitations wrt motor vehicles, but as to whether you travel first class, wear a Rolex etc., no limits AS LONG AS you are entitled to claim the expense. This is where you may come unstuck!

A professional diver could buy a cheap divers watch, but may elect to buy a Submarimer - no problem with claiming that, even if he/she bought it in solid gold! Maybe even a Comex!!!!!

Pilots and GMT, production managers or racecar pit crew and Daytona.

Even accountants and lawyers who charge in 6 minute increments may get away with a Sub, SD or even Daytona - INTERESTING....................... (now that's stretching it a bit, but maybe worth fighting?).

Good luck & Godspeed


John.

I understand where your coming from But lets face it If you want accurate time you dont want a Rolex. You want a Quartz. I think even the most uninformed arbitrator will know this. Does anyone really think that a mechanical movement can compete with a quartz movement as far as accuracy?

[JJ Irani]

Originally Posted by tonyp

I understand where your coming from But lets face it If you want accurate time you dont want a Rolex. You want a Quartz. I think even this most uninformed arbitrator will know this. Does any one really think that a mechanical movement can compete with a quartz movement as far as accuracy?

If we all owned quartz watches instead of mechanical ones, I can assure you none of us would be here....and that's a fact!!

[rmfnla]

Hell, I think the biggest advantage of wearing a Rolex in Iraq is for negotiating with your kidnappers...

[steve-o]

I spent 14 of the last 24 months in the gulf...

The tax free was a very nice benefit.

[Launch Mini]

Up in the Great White North, the expense must be paid in order to earn income.
Then, depending on the type of expense, it may be "capitalized" and written off over a number of years.
A Rolex, would be considered an asset like this, and the write off would be a whopping 10% of the cost the first year, and 20% of the declining balance each year there after.
Then I am sure you would have to argue with the taxman, should he decide to review your expenses

[astcell]

I'm tax free now, add that to a lower priced 116713 and no sales tax, I am a happy camper that should be going back to the USA next week.

[leopardprey]

Tax free also (for first $80,000K at least). Hit my 330 days on January 1. !!!!