As per our TurboTax article Guidelines for Reporting Self-Employment Income
- Expenses that qualify as deductions are those that you incurred to earn the revenue from self-employment income.
- You must be able to justify that the expense was necessary to earn your self-employment revenue.
- Expenses that do not contribute to earning the related self-employed income cannot be deducted.
In the case of an Apple Watch, you may call the Canada Revenue Agency for verification at 1-800-959-8281.
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