Can you write off a Rolex?

[Bryan81]

Originally Posted by Kevin of Larchmont

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

I couldn't imagine going anywhere other than here for tax advice. I also come here for investment advice. (Oddly enough, some people here encourage putting all your money in watches since they can only go up in value).

[Gary Busey]

Sent from my iPhone using Tapatalk

[MichaelFlash]

Originally Posted by watchtabs

First dodgy post

Lol

[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?

[Robf52]

N f w

[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.

[GoingPlaces]

Originally Posted by watchtabs

Have you filed US taxes? With an actual CPA?

Not in the US he hasn’t.


Sent from my iPad using Tapatalk

[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.


Sent from my iPhone using Tapatalk

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.

[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.

[brandrea]

Heck … my accountant gives me a sideways look at most of my meal expenses

[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

[D.P.G.]

The OP is saying because Rolex operates as a charity can you consider the purchase of the watch a gift to that charity and claim it on a tax return. Interesting thought but I believe to qualify the charity must be USA based.

[Mendota]

Originally Posted by D.P.G.

The OP is saying because Rolex operates as a charity can you consider the purchase of the watch a gift to that charity and claim it on a tax return. Interesting thought but I believe to qualify the charity must be USA based.

It also has to be a 501(c)3.

Where people get confused is Rolex is NOT a charitable organization. The Hans Wildorf Foundation is. Rolex itself is a private, for profit company, solely owned by the Hans Wildorf Foundation. So you would have to make a donation to the Hans Wildorf Foundation in order to have any kind of charitable donation. Rolex itself is a profit generating machine and any profits after expenses and paying employees then go straight to the Hans Wildorf Foundation, which is the entity doing all of the good work out there.

[NeoAnderson]

You can write off anything until theres an audit and they say its not ok.

[dannyp]

Originally Posted by NeoAnderson

You can write off anything until theres an audit and they say its not ok.

But chances are, when you get out 36-48 months later, your Rolex will be there waiting, and will probably have appreciated ever so slightly

[enjoythemusic]

Originally Posted by D.P.G.

The OP is saying because Rolex operates as a charity can you consider the purchase of the watch a gift to that charity and claim it on a tax return. Interesting thought but I believe to qualify the charity must be USA based.

Ahhhh, ok.

And...

Ummmm, no OP.

[904VT]

Originally Posted by Mendota

It also has to be a 501(c)3.

Where people get confused is Rolex is NOT a charitable organization. The Hans Wildorf Foundation is. Rolex itself is a private, for profit company, solely owned by the Hans Wildorf Foundation. So you would have to make a donation to the Hans Wildorf Foundation in order to have any kind of charitable donation. Rolex itself is a profit generating machine and any profits after expenses and paying employees then go straight to the Hans Wildorf Foundation, which is the entity doing all of the good work out there.

It's a genius and selfless structure and an amazing way to give back to the industry by a true pioneer.

OP wouldn't you think that some other Rolex owner over the years would've written off if they could? Lets say they could, I'm still not understanding what you're saying about fair market value being the same as purchase price. They're not the same. Similar to limited edition exotic cars, you purchase at a lower price than market value. If you're saying that you couldn't get more than what you paid to write off, I get that. Very strange first post.

[Stud Screw]

Originally Posted by 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.

Welcome to the forum. If your first post is any indication, you should be chock full of insights. Can't wait...

[Mendota]

Originally Posted by 904VT

It's a genius and selfless structure and an amazing way to give back to the industry by a true pioneer.

I completely agree. What a great visionary.

I meant to write "Wilsdorf," so I am sure someone will catch that misspelling. LOL

[dannyp]

Originally Posted by Mendota

It also has to be a 501(c)3.

Where people get confused is Rolex is NOT a charitable organization. The Hans Wildorf Foundation is. Rolex itself is a private, for profit company, solely owned by the Hans Wildorf Foundation. So you would have to make a donation to the Hans Wildorf Foundation in order to have any kind of charitable donation. Rolex itself is a profit generating machine and any profits after expenses and paying employees then go straight to the Hans Wildorf Foundation, which is the entity doing all of the good work out there.

It's not just that. There's a reason that people can only write off a certain portion of things like tickets to charitable events. Only that portion for which they received nothing in return can be written off. Let's say tickets to a gala are $1,000 but dinner/drinks/swag bag are valued at $600. Only $400 may be considered a charitable contribution.

[russ86]

Ask your accountant, or even better advice ask few accountants and see what they say

[Mendota]

Originally Posted by dannyp

It's not just that. There's a reason that people can only write off a certain portion of things like tickets to charitable events. Only that portion for which they received nothing in return can be written off. Let's say tickets to a gala are $1,000 but dinner/drinks/swag bag are valued at $600. Only $400 may be considered a charitable contribution.

Exactly. That's why it's so important to hitch your wagon to a good tax professional that you can trust. Not everyone requires the guidance of a full blown CPA, but as a business owner of almost 18 years I am so glad I have a CPA. She has saved me so much more than I pay her and in some instances it's multiple fold.

Sent from my SM-G986U using Tapatalk

[dannyp]

Originally Posted by russ86

Ask your accountant, or even better advice ask few accountants and see what they say

I have a feeling the answers will be the same as if you'd said:

Ask your AD (for a stainless Daytona), or even better ask few ADs (for a stainless Daytona) and see what they say .

[dannyp]

Originally Posted by Mendota

Exactly. That's why it's so important to hitch your wagon to a good tax professional that you can trust. Not everyone requires the guidance of a full blown CPA, but as a business owner of almost 18 years I am so glad I have a CPA. She has saved me so much more than I pay her and in some instances it's multiple fold.

Sent from my SM-G986U using Tapatalk

Agree. It's not just about saving, but also making sure you're properly understanding/interpreting.

In other news, perhaps the new game will be: How big a donation to the Hans Wilsdorf Foundation does it take to move your name up on the "list" with your AD ?

[Mendota]

Originally Posted by dannyp

Agree. It's not just about saving, but also making sure you're properly understanding/interpreting.

In other news, perhaps the new game will be: How big a donation to the Hans Wilsdorf Foundation does it take to move your name up on the "list" with your AD ?

For sure. I run so much past her and last year she was crucial during COVID-19 with navigating through all of the business and self employed related provisions. Preparing taxes is only part of the relationship.

Sent from my SM-G986U using Tapatalk

[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.


Sent from my iPhone using Tapatalk

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 :)

[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

[csaltphoto]

You can write off anything you like. Whether you will get away with it is another story.

[porschejeff]

As a practicing CPA for about 40 years, some pretty bad tax advice being given out in here. NO absolutely not able to deduct a Rolex to project a successful image or nice suits and clothing unless they are for stage use (entertainers) not adaptable to street wear.

I represented a news anchor that deducted clothing, hair care, etc. Guess what we list the audit (I didn’t prepare the original tax return).

You want a write off, donate your Rolex to a charity and get a deduction fir fair market value.


Sent from my iPhone using Tapatalk

[Mifune]

I don't see how you wouldn't be able to write off a Rolex... or any asset.

you need to be able to prove a capital loss by selling it for less than you bought it, and then you would only be able to write off the difference. but as with all things, it's the layering of all your 'losses' that makes the biggest difference.