Tuesday, May 12, 2015
Following up on my previous post, Practicing Law With Your Apple Watch: Entrepreneur, Is The Apple Watch Tax Deductible?:
I know many of you die-hard Apple fans have already been to an Apple Store and tried on the new watch. Others of you have probably seen the ads and wondered if -- or rather how -- this new device will truly change your life for the better.
So wouldn’t it be nice if the Apple Watch was also deductible as a business expense? It should be, right? You need it in your business in order to be more effective and efficient as a communication tool and the IRS should see it our way…well…maybe hold the phone for a moment.
If you own a small business, you should already know that since 2011, your cell phone and other similar telecommunications equipment are specifically excluded from the definition of Listed Property (IRS Notice 2011-72). Meaning you don’t have to provide a log detailing your personal and business use on the device. In fact, if you can show you have a home phone line and need your cell phone for business, you can typically deduct 100 percent of your cell phone and the accompanying service.
Moreover, under IRS Code, any expense that's ordinary and necessary for that business is deductible, and would typically include related telecommunications equipment like a Bluetooth or headphones and mic for those important business calls. (IRC Section 162)
So why shouldn’t the Apple Watch be deductible?
Many of the watch’s features are similar to a smartphone or Bluetooth device and can enhance your business sales and work productivity.