Apple Vision Pro Drops Today. Can You Deduct It?

Steven Chung (Tax Attorney, Los Angeles), You Must Know These Tax Rules If You Plan To Write Off Your Purchase Of The Apple Vision Pro:

As with most new Apple products, the [Vision Pro]  has generated a lot of hype. Supposedly, it allow users to experience various forms of virtual reality and be able to do computer tasks without the confines of a monitor.

But at a minimum price tag of $3,499 plus sales tax for the basic model, not everyone will be able to buy it. The target audience seems to be wealthy Apple fans, nonwealthy Apple superfans who will purchase it on credit with their Apple Card, social media influencers hoping to flex it to get more clicks and followers, and businesses.

While its business use has not been established, businesses seem to have several reasons to purchase it for their operations. They may find it useful for recruiting younger people who would be attracted to the newest tech products and are generally tech savvy. Or they might be able to use it to help employees with disabilities be more productive. Also, the purchase could be tax deductible as a business expense.

Some people might want to minimize the cost of major purchases by treating the purchase as a business expense and reduce their tax bill. But before people run out to start a business and write off the purchase of the Vision Pro as a business expense, there are a few tax rules you should know about.

Is it a startup cost? ...

Can you expense the cost in full or does it have to be depreciated over time? ...

What is your tax bracket? ...

If your business incurs a net loss, will the IRS consider your venture a hobby? ...