cell phone deduction

[Doogiegh]

Any of you guys deduct your cell phone as a business expense? I've heard from 4 different people. 2 say they do all the time without problem (full cell phone bill, even though they ALL say they use it for personal use as well). Other guy says he deducts only a part of it, 4th guy says he doesn't deduct it at all cause it's personal use.

Now if you advertise with the cell phone # and all your customer contacts are made with the cell phone #, what's the deal?

[gene gls]

2 trucks-2Phones deduct total cost. CPA ok's it.

Gene

[ksland]

Absolutely, Positively

[DUSTYCEDAR]

write it off:blob4:

[cantoo]

Our accountant says to write it all off. We forward home phone to cell when on the road. We also have cells for the kids that are also wrote off. Our accountant says that because we use them for business related calls it is okay. The kids use theirs to know where we are and we call them to let them know when we will be home etc. We don't use the cell for long distance personal calls anyway so I guess the personal stuff wouldn't add up to much anyway.

[Doogiegh]

Glad to hear it. That had my concered that it would be deducted and prone to an audit review just because of the cell phone. I know the business can't be run without one, but then again, if it's say 30% personal, I could see where you can only deduct 70%, etc. Thanks for the input guys. Now I know I'm not the only one.

[PLI1]

I write all the costs of my cell phone.

[Lux Lawn]

The whole thing.

[newleaflandscape]

The guys the only right off half are probobly itemizing. Thats like when you keep track of your personal gas and oil changes and keep track of miles put on trucks etc. I

[missytheaccountant]

You can deduct whatever you like, but you always are subject to the audit risk. Any personal usage other than business is not deductible on Schedule C. If you are audited and caught, personal usage would be disallowed. Your decision......chance the audit risk.....or not.

[IndyPropertyCare]

To be fair and honest... we have "business" and personal mobile phones. Business is business & personal is personal.

[Shuter]

I deduct all expenses for my cells.

[MacLawnCo]

Originally posted by missytheaccountant
Your decision......chance the audit risk.....or not.

Missy, lets be real though, our chances of an audit arent that great. i dont recal the ods my prof spit out, but they were pretty favorable... Im still not chancing anything though

[DFW Area Landscaper]

When large corporations allow their employees to 'expense' their entire cell phone bill, aren't they deducting the entire cost on their taxes?

You can't deduct all of your home owners' insurance and other home owner expenses if you claim a home office. With the home office, the IRS is very clear that we are only allowed to deduct a proportionate amount of the associated expenses.

But with cell phones, everyone deducts the entire amount of their cell phone bills. And I'd guess that the majority of the actual cell phone use is personal, not business.

Most businesses pay their employees via W2, but once you cross the line into our industry, and the construction industry, most employees are paid via 1099.

It's weird how the IRS and the accountants seem to draw up these seemingingly arbitrary rules.

Later,
DFW Area Landscaper