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Can I deduct are airpods a business expense?

TL;DR

AirPods can be deductible as a business expense if they are used primarily for business purposes, such as for communication or virtual meetings. Personal use must be minimal and well-documented to justify the deduction.

Detailed Answer

AirPods can be deducted as a business expense if they are used predominantly for business activities, such as attending virtual meetings, making business calls, or listening to work-related content. If the AirPods are used for both personal and business purposes, only the portion attributable to business use is deductible. For example, if you use AirPods 70% of the time for business and 30% for personal use, you can only deduct 70% of the cost. It's important to maintain a log or record of their usage to substantiate the business use percentage. Conversely, if the AirPods are primarily for personal use, they are not deductible. Additionally, the cost should be reasonable and necessary for your business operations.

Where to Put It on the Tax Form

Schedule C, Line 27a (Other expenses) for sole proprietors and single-member LLCs. For partnerships or corporations, it would be included in general business expenses.

Real World Example

A freelance graphic designer purchases AirPods for $200 to use during client calls and virtual meetings. They determine that 80% of their use is for business purposes. Therefore, they can deduct $160 (80% of $200) on their Schedule C.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, determine the percentage of business use and multiply it by the total cost of the AirPods. For example, if business use is 80%, multiply 0.80 by the total cost.

Audit Risk & Documentation Tips

The audit risk is moderate, as the IRS may scrutinize mixed-use items. Keep detailed records of business use, such as call logs, meeting schedules, and a usage diary. Save the purchase receipt and document the business necessity for the AirPods.

IRS Reference

IRS Publication 535, Business Expenses; IRC §162, Trade or Business Expenses.

Relevant Industries

FreelancersConsultantsRemote WorkersSales Professionals

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 15, 2025

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