Is Spotify Tax Deductible for Your Business?

Whether spotify is tax deductible depends on how you use it and your specific business situation. The IRS evaluates deductibility based on whether the expense is ordinary and necessary for your particular trade or business.

Key Rules for Deducting Spotify

Personal Spotify for listening while working (with headphones) is NOT deductible. However, if you use Spotify Business to provide background music in a retail store, cafe, or waiting room for CUSTOMERS, it IS deductible.

Requirements to Claim This Deduction

• Personal listening while working: NOT deductible
• Background music for customers (commercial license): FULLY deductible
• Must prove public/customer use

How to Document Spotify for Tax Purposes

Proper documentation is critical for any business deduction. For spotify, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 535. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.