Tax: Cell Phones

[legomom922]

We do not have a home phone..only cell phones, so since I use mine to talk/text parents throughout theday and also have to have it on me at all time incase they call or text me when I am off the clock, do you write that off as time/space? or is that a business use %?

[tymaboy]

You need to check your regulations in your area. Where I am at we can only claim a land line for DC.

[Jewels]

In my state we cam claim, a percentage of cell phones, Since I also don't have a landline, this is all I use.

[tenderhearts]

I can claim a percentage of either a cell phone OR landline.

[newtodaycare22]

We HAVE to have a landline in order to be licensed. Isn't it funny how states are so different? In MD, though, you could definitely claim the landline if you only got it because of licensing (which many people do)

[safechner]

We don't have landline too but I am using my cell phone and text only due to my deafness. I still can claim my cell phone for tax purpose for business only. That is all I use for. My husband have another cell phone and it is personal things like home phone number. I also have video phone for personal things, too like talking to my friends or paying bills..

[legomom922]

How would I find out if I can claim my cell ph? Is that a IRS law? Or just a licensing thing because I am not liscensed.

Do you write off your ph as t/s? or % of business used?

[legomom922]

BTW, I want to get a iPhone and wanted to write that off for business, since I can ck my email and CL for ads etc, so I need to know how I find out if I can write it off before I spend $300!

[legomom922]

Tom, hoping for some input on this one!

[TomCopeland]

IRS rules clearly state that you cannot deduct as a business expense the cost of the first phone line into your home, even if this is a cell phone. We had a case in Minnesota many years ago where a provider only bought a phone because she was required to have a phone under state child care licensing rules. We asked the IRS if she could deduct this phone because she didn't have one before she went into business. Answer: No.

So, if you only have a cell phone (no land line) you still can't deduct any portion of the cost as a business expense.

If you have more than one phone line into your home you can deduct the business portion of the second phone (including a cell phone). The IRS Audit Guide on family child care clearly states that to determine how much of the second phone line you can deduct you must keep a log tracking business and personal calls.

In my opinion, no provider will ever keep such a log for an entire year and I think this requirement is overly strict. I've recommended that providers use their Time-Space percentage on cell phones (when it's a second line). This could be challenged in an audit, but I think it's worth arguing about in an audit. If you do keep, say 2 months of a log tracking your phone use you will probably be okay in an audit.

[legomom922]

What if you have 2 cell phones? 1 used as your main home line and the other as portable? Os do you have to have a hard wired phone period.

[TomCopeland]

If you have two cell phone lines, the first one is not deductible. You can deduct the business portion of the second cell phone line.