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

[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]

First dodgy post

[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?

[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.

[drrd]

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

[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.

[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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[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.

[enjoythemusic]

Part of your performance 'costume' as an artist. Ask any rapper.

[brandrea]

Originally Posted by Brew

Hypothetical question, smells of tax fraud. I cannot.

[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.

[Devildog]

Originally Posted by watchtabs

Have you filed US taxes? With an actual CPA?

He's from Belgium, so probably not

[garyk]

Originally Posted by Devildog

He's from Belgium, so probably not

[Daveclock]

Yes, drive a steam roller over it.

[Deepsea Florida]

Of course......

Note :”Dear Rolex watch, I don’t like you anymore. Please leave.”

[Chute]

Here’s what I wonder: when you buy a watch at a charity auction, how much of the purchase price gets counted as a donation?

The $17mil Paul Newman Daytona comes to mind as well as the $3million dollar white gold Goldberger Daytona.

Both watches were sold with their proceeds going to charity.

Given the original cost of the items was surely sub $5,000 back in the 60’s, does the buyer then get to write off the other millions as a charitable contribution?

[watchtabs]

Originally Posted by Devildog

He's from Belgium, so probably not

Exactly my point…

[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.

[Pw92676]

Yes, you can do it. You may not like the IRS reply to it though.

[Bryan81]

Originally Posted by Chute

Here’s what I wonder: when you buy a watch at a charity auction, how much of the purchase price gets counted as a donation?

The $17mil Paul Newman Daytona comes to mind as well as the $3million dollar white gold Goldberger Daytona.

Both watches were sold with their proceeds going to charity.

Given the original cost of the items was surely sub $5,000 back in the 60’s, does the buyer then get to write off the other millions as a charitable contribution?

You can consider anything above the current market value as the charitable donation. In cases where the item is new and in current manufacture, then the market price could be considered the MSRP. Anything above that MSRP could be considered a charitable donation. Otherwise, you need to demonstrate to the satisfaction of the taxing authority that you paid above market price for the item if you want to consider any of it as a charitable donation.

In the case of the watch auctions mentioned, I would consider the market price as the amount of the winning bid. You couldn't obtain those items (or their equivalents) elsewhere at a lower price.

[macrowatch]

Pretty straight forward OP. You buy the Rolex as a legitimate business gift and you send it to me. I in return send you a thank you card.

Seriously here though, don't try to write out then flash it around on social media posts. Would be like the Italian authorities cracking down on people who drive Lamborgini's but haven't paid taxes.

[Brew]

"write off" = you guys pay for my luxury watch.

Why wouldn't that work?

[Kevin of Larchmont]

Good thing I don’t come here for tax advice.