Cell Phone Bill
Prorated for mixed use, or 100% if it's a dedicated business phone.
Details
If you use one phone for both personal and business, you must allocate costs. A dedicated second business line is 100% deductible.
Conditions
- •Single phone: allocate based on business call/data usage
- •Dedicated business line: 100% deductible
- •Keep itemized bills showing business calls
A real estate agent deducts 70% of their phone bill based on documented business calls
Deducting the full cost of a family plan covering spouse and children
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Is Cell Phone Bill Tax Deductible for Your Business?
Cell Phone Bill is partially tax deductible for business purposes. You can only deduct the portion that is directly used for your business. Accurate tracking and documentation of your business usage percentage is essential.
Key Rules for Deducting Cell Phone Bill
If you use one phone for both personal and business, you must allocate costs. A dedicated second business line is 100% deductible.
Requirements to Claim This Deduction
- Single phone: allocate based on business call/data usage
- Dedicated business line: 100% deductible
- Keep itemized bills showing business calls
How to Document Cell Phone Bill for Tax Purposes
Proper documentation is critical for any business deduction. For cell phone bill, you should:
- Keep all receipts and invoices showing the amount paid
- Record the date of the expense and the business purpose
- If mixed-use, maintain a log showing business vs. personal usage
- Store records for at least 3 years (7 years for major purchases)
Source: IRS Publication 535. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.
Related Expenses
Home Office
Yes, if you use a dedicated space exclusively and regularly for business.
Internet Bill
Partially deductible based on the percentage used for business.
Office Furniture
Yes, furniture for your business workspace is fully deductible.
Computer / Laptop
Yes, fully deductible if used exclusively for business, or prorated for mixed use.
Office Supplies
Yes, office supplies consumed in your business are fully deductible.
Coworking Space
Yes, coworking memberships are fully deductible as business rent.