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How do I deduct can airpods be tax deductible on my taxes?

TL;DR

AirPods can be tax deductible if they are used primarily for business purposes, similar to other business equipment or tools. Personal use must be minimal to qualify for a deduction.

Detailed Answer

AirPods, like other electronic devices, can be deductible if they are used predominantly for business purposes. For instance, if a freelancer uses AirPods to take client calls, attend virtual meetings, or listen to work-related content, the cost can be deducted as a business expense. However, if the AirPods are used for personal entertainment or non-business activities, only the portion used for business can be deducted. The IRS requires that the business use be substantiated with evidence, such as a usage log or a reasonable estimate of business versus personal use. It is important to note that if the AirPods cost more than $2,500, they may need to be capitalized and depreciated over time unless the taxpayer elects to expense them under the Section 179 deduction.

Where to Put It on the Tax Form

Schedule C, Line 27a for 'Other Expenses'. If depreciated, Form 4562 may be required.

Real World Example

A freelance graphic designer purchases AirPods for $250 to use primarily for client calls and virtual meetings. They estimate 80% of the use is for business purposes. Thus, they can deduct $200 (80% of $250) on Schedule C, Line 27a as an 'Other Expense'.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, determine the percentage of business use and apply it to the total cost. For example, if the AirPods cost $250 and are used 80% for business, the deductible amount is $250 * 0.80 = $200.

Audit Risk & Documentation Tips

Moderate audit risk. Taxpayers should keep purchase receipts, a log of business use, and any relevant business communications that justify the business necessity of the AirPods. Documenting the percentage of business versus personal use is crucial to support the deduction.

IRS Reference

IRS Publication 535, Business Expenses; IRC §162.

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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