Per Pub 535: Utilities. Business expenses for heat, lights, power, telephone service, and water and sewerage
are deductible. However, any part due to personal use isn’t deductible.
It is permissible to include it here, but I would have excellent records that prove without a doubt that this is a legitimate expense in case of audit. If you already have a home office and deduct this outside the parameters of the office, there may be questions.
