How do I keep track of business use on my cell phone? What does the IRS expect of me to do?

[DianeW]

This means that you should be able to support the business usage by texts, calls, applications, etc, that would provide proof of business use versus personal use.  Time is also a factor when trying to determine the business use of your phone.  The IRS expects you to be able to substantiate the percentage you claim that the cell phone is used for business. You ultimately decide the business use percentage based on the facts and circumstances as you know them.

Items of record could be advertisements with your cell number used and then jobs marked on a calendar each day that would prove the activity conducted for business and simply a log of the time you used your phone for business each day versus the time spent using your cell phone for personal uses.  The message on the voice mail might be the business name and information.

Phone Charges: If you have a dedicated phone in your home or a dedicated cell phone just for business purposes, all charges can be deducted. If you use your regular home phone (only charges for extra services for business) or cell phone for business related calls, you can deduct a portion of your bill. 

[1961n1957]

What percentage of my cell bill may I deduct as a business expense if phone # is on advertisement and business name is on voicemail?

[1961n1957]

Please explain

[RayW7]

If your cell phone acts as both your business and personal phone, you are only allowed to deduct the portion used for business from your taxable income.

It’s important for you to hang on to your itemized phone bill and receipts to ensure that you’re deducting the right amounts and to keep records of your deduction.

A general guideline you should follow is that a reasonable business expense must be ordinary and necessary. You may think this is too vague, but it may actually be to your benefit.

When you think to yourself whether your expense is ordinary, you should ask the question would a similar business incur this type of expense during the year. If the answer is yes, then the expense is most likely ordinary.

Many business owners think that necessary mean the expenses required. But this is not true at all. For the expense to be necessary, it just needs to be helpful to your business in some way.