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Is are airpods a business expense a valid tax write-off?

TL;DR

AirPods can be a deductible business expense if they are used primarily for business purposes, but personal use must be minimal or accounted for separately.

Detailed Answer

AirPods, like any business equipment, are deductible if they are used primarily for business purposes. To qualify, the taxpayer must demonstrate that the AirPods are necessary for their work, such as for frequent business calls, virtual meetings, or other professional communications. If the AirPods are used for both personal and business purposes, only the business-use portion is deductible. For example, if a consultant uses AirPods 70% of the time for business calls and 30% for personal use, only 70% of the cost can be deducted. It's important to maintain records that support the business use, such as a log of calls or meetings.

Where to Put It on the Tax Form

Schedule C, Line 27a for 'Other Expenses' or as part of 'Office Expenses' on Line 18, depending on the nature of use.

Real World Example

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

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, determine the percentage of business use by dividing the time or number of calls used for business by the total time or calls. Multiply this percentage by the total cost of the AirPods.

Audit Risk & Documentation Tips

The audit risk is moderate because personal use of technology is common. Taxpayers should keep detailed logs of business use, including dates, times, and purposes of calls or meetings. Retain receipts and any related business communication that supports the necessity of the AirPods for business.

IRS Reference

IRS Publication 535, Business Expenses; IRC §162.

Relevant Industries

FreelancersConsultantsReal Estate AgentsSales ProfessionalsIT 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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