It's more accurate to use the business use percentage during the time of your business activity against personal use of both at that time. Use the information below to help you find the most accurate reflection of these expenses. Keep records that will backup your business use percentage. Revenue and expenses will be helpful records.
Your cellphone as a small business deduction (internet will fall into this category as well).
If you're 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. In “Entrepreneur” magazine, writer Kristin Edelhauser recommends getting an itemized phone bill, so you can measure your business and personal use and prove your deduction to the IRS. Alternatively, you could get a second phone number and use it exclusively for business.
Cell phones have become so common that the Internal Revenue Service allows them as business deductions, but IRS auditors also remain aware that business owners use cell phones for personal calls. To claim a cell phone as a business expense, you must confront the issue of using it for both personal and business calls.
