communication expenses for home office

[redrose5]

I can not find communication expenses in the home office portion of Turbo tax home and business.  The only place that I can find it is on other expenses.  How do I find out what portion for the year to deduct for the business when the communication expenses were for the entire house not just the business?

[PatriciaV]

Yes, you can enter your Communications Expense under Other Expenses. TurboTax will ask if you have expenses that are limited to the Home Office only (this is not common), then follow with questions about allocating expenses that apply to the whole home. This is the section where you would enter Communications Expense. In this section, the expenses are allocated based on the square footage used for the Home Office.

[eardleec]

I create a spreadsheet where I record all the monthly charges related to the cell phone line that we use for the business (Line charges, Equipment charges, surcharges/taxes/fees) add those up and multiply by the estimated percentage the phone is used for business purposes other than personal calls. I use 25% and enter 25% of total charges for that line in the Communications expenses (4th down) under Business Expenses. I also include the yearly fee for the business land line. 

[AmyC]

Publication 535 (2021), Business Expenses - Internal Revenue Service states under category Telephone:

You can’t deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. 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.

See: IRS Tax Information For Businesses

@eardleec

[redrose5]

When I enter the expense under other for communication expenses it does not ask if it is for the whole home.  It only says to enter it for monthly or yearly expense.  It only asks that if I am entering it under home office but there is not a place for me to enter communication expenses under home office

[redrose5]

When I enter the expense under other for communication expenses it does not ask if it is for the whole home.  It only says to enter it for monthly or yearly expense.  It only asks that if I am entering it under home office but there is not a place for me to enter communication expenses under home office

[PatriciaV]

If you are reporting communications expenses as discussed by Expert AmyC above, you may enter these as Other Miscellaneous Expenses with a custom description. 

Again, be sure you enter allocated expenses for the Home Office if you are not reporting total expenses for the home. (TurboTax asks you this at the beginning of the expense section of Home Office. Return to the beginning and review your answers if you're not sure.)

If you enter a general business expense in the wrong category, it will not affect your taxes. Just be sure you don't enter the same expense twice.