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New Member
posted Jun 5, 2019 3:14:35 PM

Smartphone purchase for business. Expense or Asset?

I do not own my own business. I work sales for a transportation company that does not provide business phones. I bought a new smartphone in 2017 worth $950. I use it 90% of the time for business. Should I list it as an asset and take the full depreciation or list it as expense? Which option would maximize my return?  Many thanks.


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3 Replies
Level 15
Jun 5, 2019 3:14:37 PM

I presume your income is reported to you on a W-2, and not a 1099-MISC. Therefore the phone is a job-related expense. That's under the Deductions & Credit tab in the Employment Expenses section. Elect to start/update Job Related Expenses under that heading. Then work it through and one of the selections asking what you have, will be "Cellular phone, similar telecom equipment" and that's the one you want. If offered the opportunity to deduct it all in the first year, then take it. Otherwise, it's depreciated over 7 years at $116 a year, and at most, that will reduce your tax liability by $2 (if you're lucky).

New Member
Jun 5, 2019 3:14:38 PM

Awesome.  Just what I needed to know.  Thanks.

Level 15
Jun 5, 2019 3:14:39 PM

Understand that job related expenses are an itemized deduction on SCH A. Until the total of all your itemized deductions exceed 10% of your AGI, those itemized deductions do nothing for you.