Can I claim Bonus Depreciation on an Apple Watch for my small business?

I own a small marketing agency and I'm trying to get my finances in order for the upcoming tax season. I recently purchased an Apple Watch Series 9 for $499 and I've been using it quite a bit for business purposes - checking client emails, taking calls, tracking time spent on projects, and responding to urgent messages when I'm away from my computer. I'm wondering if the Apple Watch qualifies as a depreciable business asset that I can write off. Since I do use it for personal stuff too (tracking workouts, checking personal messages, etc.), I was thinking of designating it as 50% business use. Would that allocation be reasonable from a tax perspective? I don't want to be too aggressive with deductions, but I also want to take advantage of legitimate business expenses. Also, does anyone know if the Apple Watch would qualify for bonus depreciation or Section 179? I've heard mixed things about electronics and depreciation rules. Any advice from those who have dealt with similar situations would be greatly appreciated!

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18 comments

Maya Lewis

•8M

Yes, you can claim depreciation on an Apple Watch used partly for business. Since you're using it for business communication, time tracking, and client management, it definitely qualifies as a business asset. The 50% business use allocation sounds perfectly reasonable based on how you've described your usage pattern. For tax treatment, you have a few options. You could take bonus depreciation or use Section 179 for the business portion (50%) of the cost. The Tax Cuts and Jobs Act allows 100% bonus depreciation for qualified business assets, including technology items like your Apple Watch. Alternatively, Section 179 would let you deduct the business portion immediately instead of depreciating it over several years. Just make sure you keep good records documenting the business use - maybe keep a log for a typical month showing business vs personal usage to support your 50% allocation if ever questioned.

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Maya Lewis

•8M

If you're using the watch 80% for business, that's absolutely fine to claim - higher percentages aren't inherently suspicious as long as they're accurate. I would recommend keeping some basic documentation of your usage patterns - maybe a simple log for a couple weeks showing how you use it throughout typical workdays. This doesn't need to be elaborate, just enough to show your business usage is legitimate if questioned. For filing differences between sole proprietor vs LLC, there's no difference in how you'd claim the depreciation if you're a single-member LLC taxed as a sole proprietor. You'd report it on Form 4562 and Schedule C in both cases. If you're an LLC taxed as an S-Corp or partnership, you'd still use Form 4562 but the depreciation would flow through to your business return rather than Schedule C.

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Lucy Taylor

•8M

Just wanted to share my experience with this exact situation. I was struggling with tracking business expenses for my freelance work, especially smaller items like my Apple Watch that I use partially for business. I found this tool called taxr.ai (https://taxr.ai) that was a HUGE help in figuring out what percentage of my tech devices I could legitimately claim as business expenses. I uploaded my receipts and answered a few questions about how I use my devices, and it gave me clear guidance on what I could deduct and how to document it properly. It actually recommended a 60/40 split for my Apple Watch based on my usage patterns, which was more than I thought I could claim! The tool also helped me understand bonus depreciation vs. regular depreciation for tech items.

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Lucy Taylor

•8M

It actually does have specific categories for smartwatches, tablets, and other tech that falls outside the typical computer/phone categories. It asked detailed questions about how I use my Apple Watch during the day, which apps I use for business, and how I integrate it with my work processes. Much more specific than other tools I've tried. For determining usage percentages, it doesn't just guess - it walks you through a series of questions about your specific usage patterns. For example, it asked how many hours per day I wear the watch, which business apps I use, whether I use it for client calls, and whether I take it off after business hours. Based on my answers, it calculated the 60/40 split. It also explained that I should keep a usage log for a typical week or month to support this percentage if needed.

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KhalilStar

•8M

I wanted to follow up on my earlier skepticism about taxr.ai. After our discussion, I decided to give it a try with my own business expenses. I was honestly impressed with how thorough it was! I have an Apple Watch Ultra that I use for my photography business (client communications, scheduling, and GPS when shooting on location), and it helped me properly document a 70% business use case. The tool asked really specific questions about my usage patterns and even provided a template for keeping a usage log. The best part was that it explained exactly how bonus depreciation applies to my specific situation, which my previous accountant had never made clear. I ended up finding several other tech items I wasn't depreciating correctly. Definitely worth checking out if you're trying to properly account for tech items that have mixed business/personal use.

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Amelia Dietrich

•8M

If you're struggling to get answers about bonus depreciation on your Apple Watch from the IRS, I completely feel your pain. I spent WEEKS trying to get through to someone who could give me a definitive answer on depreciating my tech purchases. After getting disconnected multiple times and waiting on hold for hours, I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that smartwatches used partially for business do qualify for bonus depreciation for the business-use portion, and that 50% business allocation is perfectly reasonable if that reflects actual usage. He also confirmed I needed to file Form 4562 and explained exactly how to record it. Such a relief to get a definitive answer directly from the source!

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Amelia Dietrich

•8M

It's not scheduling a callback - what it does is continuously dial the IRS for you using their system, navigating the phone tree automatically, and then it calls you once it reaches a human agent. So you don't have to spend hours redialing or waiting on hold. When your phone rings, you're already connected to an IRS representative. I was skeptical too! I thought it sounded too good to be true. But it's not "skipping" any queue - they're just handling the tedious part of repeatedly calling and waiting on hold for you. They have some technology that keeps trying different IRS numbers and pathways through the phone system until they get through. I've used it twice now and both times I was connected to an agent within 30 minutes instead of spending hours trying myself.

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Katherine Ziminski

•8M

I need to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to test it out myself since I'd been trying to reach the IRS for weeks about a notice I received regarding my business equipment deductions. I was honestly shocked when my phone rang 22 minutes later with an actual IRS agent on the line. The agent helped me clarify that my Apple Watch (60% business use) could indeed use bonus depreciation, and also helped me understand how to properly document the business use portion. I was able to ask several other questions about depreciating my other tech purchases too. For anyone struggling with these depreciation questions, talking directly to the IRS saved me so much uncertainty and worry about doing things incorrectly. I'll definitely be using this service again during tax season when it's nearly impossible to get through the normal way.

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Noah Irving

•8M

Don't forget that for 2025 taxes, bonus depreciation is reduced to 80% (down from 100% in previous years). So if your Apple Watch costs $499 and you use it 50% for business, the depreciable business portion is $249.50, and you can take 80% of that ($199.60) as bonus depreciation in the first year. The remaining $49.90 would be depreciated over 5 years using MACRS. Also, make sure the watch meets the requirements for "listed property" since it's dual-use. You need to keep records of business vs. personal use to substantiate your percentage.

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Noah Irving

•8M

You're right to be confused because the rules aren't always intuitive. Computer equipment (including peripherals like tablets and smartphones) is actually 5-year property under MACRS, not 3-year as many people assume. This includes smartwatches when they're used as computer peripherals. The IRS classifies most technology and office equipment as 5-year property. The 3-year property class is more limited and generally includes things like tractor units and racehorses. It's a common misconception, so don't worry if you've been using the wrong recovery period - you can correct it going forward.

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Julian Paolo

•8M

I've done this in TurboTax. You need to go to the Business section, then look for "Business assets, depreciation & section 179." There's a section specifically for entering assets purchased during the year. You'll enter the watch, its cost, business use percentage, and then it will walk you through options for Section 179, bonus depreciation, or regular depreciation. Don't enter it as a simple expense - that's definitely not correct for something that has a useful life of more than one year. The software should help calculate everything correctly once you enter it as a depreciable asset.

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