Can I Write This Off?

Can I write off AirPods as a freelancer?

TL;DR

Yes, you can potentially write off AirPods as a freelancer, but only if they are used exclusively for your business.

Detailed Answer

As a freelancer, you can deduct the cost of equipment and supplies that are ordinary and necessary for your business. If you use AirPods exclusively for your business-related activities, such as client calls or editing audio files, they can be considered a business expense and be deductible. However, if you also use them for personal activities, you can only deduct the percentage of the cost that corresponds to business use. For example, if you use your AirPods 50% of the time for business and 50% of the time for personal use, you can only deduct 50% of the cost. It's important to keep accurate records to substantiate your claim.

Where to Put It on the Tax Form

This deduction should be reported on Schedule C (Form 1040), Part II, Line 13 (Depreciation and section 179 expense deduction).

Real World Example

A freelance graphic designer purchases AirPods for $200 and uses them 80% of the time for business calls with clients. The designer can deduct $160 (80% of $200) as a business expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, multiply the cost of the AirPods by the percentage of time they are used for business. For example, if the AirPods cost $200 and are used 80% of the time for business, the deduction would be $160 (200 x 0.80).

Audit Risk & Documentation Tips

Keep a detailed log of when and how you use the AirPods for business to substantiate your deduction in case of an audit. Also, keep the receipt of the purchase.

Can I write off AirPods as a freelancer?

TL;DR

Detailed Answer

Where to Put It on the Tax Form

Real World Example

Calculation Required

Audit Risk & Documentation Tips

IRS Reference

Relevant Industries

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