If I purchased a phone for my buisiness that cost over $200, do I file it as an office expense, or an asset - when my business made under $20,000.00 ?

First, you should go through the depreciation/asset section for the business you are reporting and you will see a question regarding an election to expense asset purchases.You will be given the option to elect to expense your assets if they cost under $2,500, and if you accept that election, then you can simply expense the cost of the phone.