I am catching up on my expenses and I was wondering if cell phone usage is deductible? If so, what percentage if it is sometimes used for personal?

Thanks!

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Lisa George
Remote Admin Services
Web:http://remoteadminservices.com
Blog:http://remoteadminservices.wordpress.com

You can deduct the business use of your cell phone as a business expense. If you have a home-office then you must have a seperate phone line for the business as the first line is automatically not deductible.

I have a home phone and a cell phone, but I list the cell phone as my business number and the calls on it are mostly business related, although I do get personal calls on it. I also use my home phone to make business calls occasionally but I don't advertise that number.

I pay the entire cell phone bill out of my business account and the home phone bill out of the personal account. As far as I'm concerned my cell phone is my business line and I deduct 100% of it. If I ever get audited the IRS could try to reduce the deduction by personal usage, but I'm willing to argue that with them if I have to. Every business gets some percentage of personal calls.

If you only have the cell phone and not a home phone then you should reduce a percentage of the deduction for personal use. You will just have to make a judgement call on how much you think is business and personal.

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Rebecka Melson ~ Virtual Business Services

I do not use my house phone, rather Skype. Also I have 2 cell phones on my account but would split the bill since my husband uses the other one. I would even knock off a percentage of the personal use (which isn't much) if the IRS might cause a stink over it.

Thanks for the input. Someone told me that you would need 2 cell phones in order to write off any business usage. I thought that was nuts!!

__________________
Lisa George
Remote Admin Services
Web:http://remoteadminservices.com
Blog:http://remoteadminservices.wordpress.com

Originally Posted by LML77

I do not use my house phone, rather Skype. Also I have 2 cell phones on my account but would split the bill since my husband uses the other one. I would even knock off a percentage of the personal use (which isn't much) if the IRS might cause a stink over it. Thanks for the input. Someone told me that you would need 2 cell phones in order to write off any business usage. I thought that was nuts!!

No, the 2 phone rule only applies to residential phone lines.

Quote from IRS website (Publication 535):

"Telephone. The cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even though you have an office in your home is not deductible. However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses."

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Rebecka Melson ~ Virtual Business Services

Originally Posted by Rebecka

No, the 2 phone rule only applies to residential phone lines. Quote from IRS website (Publication 535): "Telephone. The cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even though you have an office in your home is not deductible. However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses."

This is definitely good to know! I've been thinking of adding a second line exclusively for business, and this is just one more little push!

okay, so perhaps I need to convert my house phone number to my company name. We only use the house phone for my business, but my cell phone is used for my real estate business.. Can I deduct both?? Please say yes!! lol

tj

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Tamika R. Johnson, MBA, Principal
administrative partners, llc
www.administrativepartners.net | http://adminpartners.blogspot.com

As a tax preparer I have to tell you what the IRS regulations say which is "you cannot deduct the first telephone line into your home". IF you got audited the IRS would disallow the deduction for the first phone line.

If you told them you used both home and cell phone for business, then the first question they would ask is "which phone do you use for personal use then?".

Probably, the only way you could get away with switching the phone line over to a business account, would be if your office was not attached to the house i.e. an un-attached garage.

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Rebecka Melson ~ Virtual Business Services

Got it, so there must be two in order to be able to deduct one and it must be dedicated to the business.. makes sense.

Thanks for you insight

__________________
Tamika R. Johnson, MBA, Principal
administrative partners, llc
www.administrativepartners.net | http://adminpartners.blogspot.com

I got a bundle package from Comast: Telephone Line/Fax Line/Internet/Cable, am I able to deduct the whole package deal? I'm not worried about my cell phone because I have a local service that provides me with unlimited everything for a great price.

Originally Posted by vp inc

I got a bundle package from Comast: Telephone Line/Fax Line/Internet/Cable, am I able to deduct the whole package deal? I'm not worried about my cell phone because I have a local service that provides me with unlimited everything for a great price.

Probably not, because the cable television would not be used for business. Do you take personal calls on the phone at all? You may be able to deduct a portion of the package, but probably not the whole thing.