tax write off on watch?

[340drvr]

Don't know for sure, but I'd imagine something like a $4K watch would have to be depreciated over several years. You should check on that before simply subtracting the whole amount in one year.

 

[billybob]

now if i could only make some money as a cfi, i could write things off

 

[bobbysamd]

Breitling write-off

You can try to write off anything, but my gut reaction is that writing off your Breitling is a bit too aggressive and could invite an audit. On the other hand, the IRS employs many criteria to flag returns for audits and your situation might allow you to avoid an audit.

The IRS has a number of criteria to prompt audits. High-income taxpayers are targets. I heard that those who misreport interest and dividend income are audited. By misreporting I mean that the numbers shown on returns do not match the 1099s supplied by payors. If you otherwise don't fall into the category of taxpayers most susceptible to being audited, you might get by with writing off your Breitling.

The suggestion was made that you might depreciate the watch. New watches lose a great deal of their value after being worn - perhaps up to 50% - because they are then regarded as "used" watches - but a number of watches, such as Rolexes, etc., hold their value.

I second the advice that you discuss writing off your Breitling with your tax advisor. One thing that you should do after acquiring it is have it appraised and give a copy of the appraisal to your homeowners' insurance company so the watch is insured.

Good luck, and enjoy the watch.

 

[Lopaka]

Hey, you might want to look into buying it elsewhere than in the US. I saw quite a few in the Cayman's for about a grand cheaper, but ended up picking mine up in Cozumel for about $1500 less. Lots of places really want get rid of it because they've held it for so long and the market is so narrow for that specific watch, so you can talk them down. I never thought about writing it off though, that's interesting.

 

[Hawker rider]

I would like to pull this thread back u, to see what the tax-advisor told one of the previous posters about writing it off, all at once or spread it over a few years.

he said he would get back, but hopefully he will now

 

[wingnutt]

wow, i missed this one the first time around $4,000.00 for a watch???

...am i the only one who cant grasp this?

 

[ShawnC]

wow, i missed this one the first time around $4,000.00 for a watch???

...am i the only one who cant grasp this?

Remember it's a fact that a pilots skill is not measured by how well he lands, but by how big his watch is.

Judging by the fact that it has an ELT built in, I would say it's probably pretty big.

 

[Gulfstream 200]

nah 4K for a watch is not crazy......but 4K for a Quartz watch....now THATS crazy.

Breitling aint worth 4K....

wait until the Dollar gets stronger overseas, you can pick that watch up for 2K.

..just an idea...

 

[Thedude]

The guy that buys the watch with the ELT built in is proabaly the same kinda guy that walks around the mall in uniform.


Jeeezzzz........

 

[JimNtexas]

My wife is an enrolled agent, together we run a tax preperation business.

If the pilot is paid on a W-2 then we both agree that there is no way to deduct the watch. You'd have to be able to show that your employer required you have this watch. I bet most commerical operators of airplanes have clocks in the office and in the panels of the plane.

It's different if the pilot is self-employed.

My first reaction was to say that if the pilot with the fancy watch is self employed then he or she should be able to take section 179 depreciation on the watch. This would let them deduct the entire $4000 watch in the year acquired assuming the pilot had at least $4000 of income.

My wife, who is a very conservative tax preparer, says no.

She says that there have been tax court ruling against doctors and nurses who tried to depreciate watches. The court said that watches are "personal jewlery" .

I'd say ask the question and beg for forgiveness if you're wrong. She says she wouldn't let you do it if she prepared your return.

Take your pick.