You can depreciate the phone. Include it as an asset.
Cellphone depreciation
The Small Business Jobs Act of 2010 changes the way you calculate cellphone depreciation, according to the Schneider Downs accounting firm. Under the old rules, if you used your cellphone less than 50 percent of the time for business, you could only depreciate it on a straight-line 10-year depreciation schedule. Now, however, the law allows you to write off depreciation—the loss in value from wear and tear—over a seven-year schedule, in addition to making it easier to claim bonus depreciation.
Cell phone
