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How do I deduct are airpods tax deductible on my taxes?

TL;DR

AirPods can be deductible if they are used primarily for business purposes, but personal use must be excluded from the deduction. It's important to substantiate the business use to avoid issues with the IRS.

Detailed Answer

AirPods, like other electronic devices, can be deducted as a business expense if they are used for business purposes. To qualify, the taxpayer must demonstrate that the AirPods are necessary and ordinary for their business activities. For instance, if a consultant uses AirPods to conduct virtual meetings or calls with clients, this could qualify as a deductible expense. However, if the AirPods are also used for personal activities, only the portion used for business can be deducted. This requires keeping detailed records of business versus personal use. The IRS generally requires that the business use be more than 50% to qualify for a deduction. It's important to note that the cost of AirPods should be capitalized and depreciated if they are considered a capital asset, unless the Section 179 deduction or the de minimis safe harbor election is applied.

Where to Put It on the Tax Form

Schedule C, Line 18 (Office expenses) or Line 27a (Other expenses), depending on the nature of the use.

Real World Example

A freelance graphic designer purchases AirPods for $250 to use primarily during client calls and virtual meetings. They estimate that 80% of the use is for business. They would deduct $200 (80% of $250) on their Schedule C as an office expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, determine the percentage of business use. Multiply the total cost of the AirPods by this percentage. For example, if the AirPods cost $250 and 80% of their use is for business, the deductible amount is $250 * 0.80 = $200.

Audit Risk & Documentation Tips

Moderate audit risk. To substantiate the deduction, keep purchase receipts, a log of business versus personal use, and any documentation that supports the necessity of the AirPods for business activities, such as client contracts or meeting schedules. Consider using time-tracking software or logs to demonstrate business use.

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 25, 2025

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