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Is are airpods tax deductible a business expense?

TL;DR

AirPods can be deductible as a business expense if they are used primarily for business purposes, such as client calls or virtual meetings. Personal use must be minimal to justify the deduction.

Detailed Answer

AirPods may be deductible if they are used predominantly for business activities, such as participating in conference calls, virtual meetings, or listening to work-related podcasts. If the AirPods are used for both personal and business purposes, only the business-use portion can be deducted. For example, if you use them 70% of the time for business, you can deduct 70% of the cost. However, if personal use is substantial, the IRS may challenge the deduction. It's crucial to maintain records that demonstrate the business necessity and usage of the AirPods.

Where to Put It on the Tax Form

Schedule C, Line 27a for business expenses. If part of a home office deduction, it may also be included in Form 8829.

Real World Example

A freelance graphic designer purchases AirPods for $200 to use primarily for client meetings and design tutorials. She estimates 80% of the usage is for business, so she deducts $160 (80% of $200) on her Schedule C.

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 $200 and are used 80% for business, the deductible amount is $160 ($200 x 0.80).

Audit Risk & Documentation Tips

The audit risk is moderate. To support the deduction, keep receipts, a log of business use, and any relevant correspondence or schedules showing the necessity of the AirPods for business activities. Documenting the percentage of business use versus personal use is crucial.

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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