LLC phone

[ztshapiro]

Can I purchase a new work phone every year and deduct the full amount paid?

What are the advantages and disadvantages of buying a phone outright vs payments over time?

[DavidT0202]

Hi @ztshapiro 

You can purchase a new phone and deduct it as long as it is used for business use.    The advantage is a deduction each year against the income from your business. 

If you make payments on the phone over time, you can deduct those payments in the year paid against income which can spread out your deduction. 

Also your monthly bill can be used as a deduction as well as long as you use it for business.  If you use it 40% business and 60% personal, then 40% of it is deductible. 

If you have further questions please reply below.

Thank you for using TurboTax!

[ztshapiro]

How do you determine use percentage? I nearly only make phone calls for work, but all texts are personal. I use both work and personal email on it. I just don’t understand how to come up with that percentage split.

[DavidT0202]

Well, you will need to determine that by looking at usage. 

If 50% of the emails and texts are personal then the phone is used 50% for business. 

You can always break it down between calls, texts and email. 

Example Phone bill is 150 a month.  50 for calls, 50 for texts, 50 for email.  Then determine the use for each business and personal.