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betzy24
New Member

On the communications expense the phone amount is yearly? What percent I can claim?

 
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AnnetteB6
Employee Tax Expert

On the communications expense the phone amount is yearly? What percent I can claim?

There is not a set percentage that works for everyone.  If you use your cell phone for personal reasons and for business use, then you need to determine how to divide the cost according to your circumstances.  Then, you can claim the percentage of the cost that pertains to business use as a business expense.

 

For example, if you take 1-2 business calls per day, but 8-9 personal calls per day and that is a typical day, then of the 10 or so calls per day, 10-20% of them were for business use.  That means you can claim 10-20% of the cost as a business expense.

 

Be aware that in the unlikely event that you are audited by the IRS, you will need to provide documentation about how you determined the percent of business use that you claim.  Therefore, keep some notes about how you did the math.

 

If you are talking about the cost of a land-line phone in your home, then you must have a separate line installed for business use.  You cannot claim any of the cost of the first line as a business expense.

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