Home Internet and personal Cell for Single person MI LLC for IT consulting

[kmzimm20]

I am a single person LLC in MI with a focus on IT Consulting and use my home internet and personal cell phone.

How much is reasonable to deduct?

Would the increase from basic internet to a higher tier given I need video conferencing.

For my personal cell, I have a 5-person family shared plan. Is it reasonable to deduct 50% of 1/5of the entire bill?  I think that would equate to about $10 per month.

And for these, should I just submit a personal expense report to my LLC and pay based on that?

[evelynm · Accepted solution]

As a single member LLC you are essentially self-employed and you use your cellphone for business, you can claim the business use of your phone as a tax deduction.   If 30 percent of your time on the phone is spent on business, you could legitimately deduct 30 percent of your phone bill.    Your itemized bill should help with determining your cellular vs the other family members.

As far as the calculations and tips here is a link with great information:   cellphone-expenses-tax-deductible-with-a-business 

Pay for your internet with your business credit card.  A single member LLC is a "disregarded entity" for IRS purposes so you will file the business on Schedule C.  There is no need to implement a reimbursement process.

Additional information:   small-business-taxes/mobile-phones-internet-and-other-easy-tax-deductions