Cellular phone for business ?

Edwards Finance > Phones

Q. I wonder if you can deduct a cell-phone bought just for business travel as a business expense? I was once told by my accountant that if I had another phone installed (I have two now) that only one could be used as a business expense. (I thought maybe one for the internet was a business expense since I use the internet mostly for business purposes and another phone for just business calls and then my own private phone for everyone to use would, of course, not be a business expense. Does anyone else do both as a deduction or know if this can be used as a deduction along with your business phone when you have your office at home? I will, of course, talk to my accountant about it, but I am not so sure I trust her judgment on the fact that even if I use two phones for business (one for the internet for business and one for business calls) that I can only deduct one. I would think since the cell phone is used outside of my home, but for business purposes that it would then be deductible along with the home based business phone.

A. I think she is wrong. You cannot deduct a single home phone as a business expense (except you can deduct any long distance charges that are made for business). If you have business lines in your home, I would think there is no limit on how many you deduct. I have two business lines (and these are not just extra resdential phone service). I have a pager I deduct. I do not deduct my cell phone because it is not really for business. It I used it mainly for business I would deduct it. We have a cable online service which allows both of us to access at same time and I deduct half of it as business. I rarely use it for anything other than business. I do also have a personal laptop I use on line. However, we do not note that we are deducting half to keep it simple. I don't understand why she would think you can only deduct one business line? That is ridiculous. Some services would need multiple phone lines for incoming dictation, etc. My husband has his own business and we deduct his cell phone every year so far, have not had a problem (as I am knocking on wood) and our accountant seems to think this is okay. He also has a inline phone that we deduct, and any phonecalls he makes from home I just highlight in our phone bill (as it is long distance to his business area) and add those up and deduct that too! I would be looking for a new accountant. Businessees have 10-15, 30 telephone lines. My business has three cells phones. There is no limit. You just have to be sure that you use it for business purposes. I have always deducted my cell phone. The offices I do business for have to be able to reach me. I rarely use it for anything other than business. I am sure there is no limit to the number of phones a business can have. As someone else said, I think you need a new accountant. I also deduct half my home phone bill, and my internet access (just going to an ADSL line next week). Since I do use the internet for personal use occasonally and e-mail, and since I will certainly do it more so with ADSL, I will probably only charge 1/2 of the new service to my business.

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