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Level 2
May 1, 2023
Question

Phoning it in

  • May 1, 2023
  • 3 replies
  • 7 views

Physical phone 1 is used 100% for personal use. Physical phone 2 is used 100% for business use. Sole Proprietor, Schedule C. If the law is logical, then I can add 100% of business phone 2 into my expenses.

3 replies

Level 15
May 1, 2023

If both phones are only used for business then the expenses for both are deductible on Sch C. 

biglightAuthor
Level 2
May 1, 2023

That wasn't what I said. Please reread my question.

Level 15
May 1, 2023

Why would you think a 100% business phone is not deductible?

 

Of course, the phone itself is an asset that must generally be depreciated, although it may fall under one of the special rules that allow you to take accelerated depreciation or use it as an expense under a safe harbor.  (Which then creates a recapture issue if you sell it used when trading up.)  And the monthly bill would be a business expense.

 

Why do you think it might be different?

Carl
Level 11
Level 11
May 2, 2023

The phone bill for the one that is 100% business use, is 100% deductible as a business expense. Doesn't matter if it's a landline or a cell phone.