topic Cell phone deduction in Deductions & credits

Cell phone deduction

mtran003 — Mon, 03 Jun 2019 18:35:14 GMT

I bought a new cell phone device for business use but is paid for in monthly installments through my carrier. Can I make a one time total cost deduction for the final price -- even though I was was still making payments after 2018? Please note this is for device only. I have already deducted service charges separately.

You can take one deduction for the business cost in 2018....

WillK — Mon, 03 Jun 2019 18:35:17 GMT

You can take one deduction for the business cost in 2018. You would then report the 2019 cost on your 2019 return.

I don't follow. Total price of new cell device was 649 -...

mtran003 — Mon, 03 Jun 2019 18:35:18 GMT

I don't follow. Total price of new cell device was 649 -- I still owe 549 as of Dec 31, 2018. What can I deduct?

You can deduct the amount of your cell phone bill (that i...

WillK — Mon, 03 Jun 2019 18:35:20 GMT

You can deduct the amount of your cell phone bill (that includes the payments you are making towards the phone) based on the percentage that you use it for business. For example, lets say your cell phone bill was $500.00 (used 100% of the time). You calculated that you used your phone 30% of the time for business and 70% of the time for personal. So $500.00 multiplied by 30%= $150.00. You can write off $150.00 as a business expense, and $350.00 would be a personal expense.