Are you a lawyer? Include your watch in your business expenses!

Can a good watch be deductible? It turns out that yes! The Treasury issued a positive decision in the case of a lawyer who wanted to include a watch in the costs of running a law firm. So it’s worth claiming the watch as a deductible expense – as long as you can justify that you need it at work.

Why can a lawyer put a watch into business expenses?

Whether men’s watches and women’s can be not only a practical gadget, but also a working tool? In some cases, yes. A lawyer who runs a one-person law firm applied to the tax authority for an interpretation. The decision was positive, as the tax office found that he needed the watch to perform his duties. Why?

The lawyer bought a mechanical chronograph watch for more than 5,000 zlotys. He justified his willingness to put it into the company’s expenses by the need to measure time while working. The lawyer stressed that he needed to measure time to the nearest minute, because without accurate measurements, he might not get paid. The choice of a mechanical watch was justified by the need to be equipped with a chronograph to measure time. Chronographs are only available on mechanical watches, due to the sophistication of the mechanism.

In theory, you could replace your watch with a laptop or phone. However, a lawyer also handles criminal cases and cannot always carry electronic devices when conducting meetings with clients. A similar situation arises when working in secret chambers, where classified information is especially protected.

Thus, the watch is necessary to control the time of work, in addition to matching the formal attire required for a lawyer.

Including women’s watches or men’s in the company’s expenses, however, one basic rule must be kept in mind: the watch can only be used at work, not at leisure. However, this restriction in practice is obviously difficult to control.

What can be considered a deductible expense?

Deductible expenses are discussed in detail in the Corporate Income Tax Law of February 15, 1992 (Journal of Laws 1992 No. 21 item 86) and the Personal Income Tax Law of July 26, 1991 (Journal of Laws 1991 No. 80 item 350).

There is no single, strictly defined list of expenses that can be included in deductible expenses. The most important thing is that the costs should be:

• Actually incurred by the taxpayer,
• Non-refundable,
• Incurred for the purpose of earning revenue or securing the source of revenue,
• Documented,
• Not listed in Article 23 of the PIT Law,
• Closely related to business operations.

This last point gives room for interpretation, since close connection to business is subjective. In matters of dispute, the decision of the treasury is binding.

Every lawyer needs a good watch, which not only allows you to measure time, but also complements your elegant business attire. As it turns out, its purchase can be charged as a tax-deductible expense, so it is worth visiting an online watch store and choose a model that works well for your daily duties.