The IRS treats smartwatches as personal items unless there is a clear, documented business purpose. A personal trainer tracking client workouts, a nurse monitoring health metrics, or a business owner using it exclusively for business communications may have a case. The deduction is prorated by business use percentage.
Getting the deduction right is not just about whether it is allowed — it is about how you set it up.
Document specific business functions -- workout tracking for clients, health monitoring for medical professionals, business communications.
Save receipt. Document business use percentage.
Deduct business-use percentage as equipment expense.
Do not claim 100% if you also use it personally.
Fitness professionals and medical professionals have the strongest case for this deduction.
When structured correctly, this deduction can significantly reduce your taxable income.
Here is how this deduction typically works in real situations:
A personal trainer uses an Apple Watch to track client heart rates during sessions.
A business owner uses Apple Watch 60% for business communications.
An office worker deducts an Apple Watch claiming it helps manage meetings.
Key Takeaway: The difference between a valid deduction and a denied one usually comes down to documentation, usage percentage, and proper structuring. The same expense can be fully deductible, partially deductible, or not deductible at all — depending on how it is handled.
Only with a clear business purpose. Fitness professionals and medical professionals have the strongest case.
