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Is are airpods a business expense a business expense?

TL;DR

AirPods can be a deductible business expense if they are used primarily for business purposes, but personal use can complicate the deduction. It's essential to substantiate their business use to avoid issues with the IRS.

Detailed Answer

AirPods, like other electronic devices, are deductible as a business expense if they are used predominantly for business activities. For example, if a consultant uses AirPods for client calls or virtual meetings, they can be considered a business expense. However, if the AirPods are used for personal entertainment or leisure, the deduction may be disallowed or limited. The IRS requires that such expenses be 'ordinary and necessary' for the business (IRC §162). If the AirPods are used for both personal and business purposes, only the business-use portion is deductible. This requires maintaining a log or record of business use versus personal use.

Where to Put It on the Tax Form

Schedule C, Line 27a for 'Other Expenses'.

Real World Example

A freelance graphic designer purchases AirPods for $200 to use primarily for client calls and listening to design tutorials. They estimate 80% of the use is for business and 20% for personal use. They can deduct $160 (80% of $200) as a business expense on their Schedule C.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing the time or usage for business purposes by total usage. Multiply the total cost by this percentage to determine the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Keep receipts and maintain a log detailing the business use of the AirPods. Document specific instances of business use, such as client meetings or professional development activities, to substantiate the deduction.

IRS Reference

IRC §162, IRS Pub 535

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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