tenderhearts 09:24 AM 10-08-2014
I'm a little confused about the whole phone deduction. I have always deducted our landline, internet and cable all in one. Ive read some posts that you can't deduct landline? My tax accountant hasn't said we aren't suppose to. Can you explain this for me please? I should add that we do have a cell phone but I do not use that for my business, well rarely, I use our landline for advertising, parents ect.
TomCopeland 03:14 PM 10-08-2014
Originally Posted by tenderhearts:
I'm a little confused about the whole phone deduction. I have always deducted our landline, internet and cable all in one. Ive read some posts that you can't deduct landline? My tax accountant hasn't said we aren't suppose to. Can you explain this for me please? I should add that we do have a cell phone but I do not use that for my business, well rarely, I use our landline for advertising, parents ect.
You can't deduct the cost of the first phone line into your home, regardless of whether it's a landline or cell phone. You can deduct the business portion of a second or third line that you do use in your business. Use your time-space % or an actual business use calculation.
Since your phone bill is combined with cable and internet, divide the cost by thirds (phone, cable, internet). Deduct the time-space % of the cable and internet. Divide the cost of the phone by the number of phones lines (landline and cable). Only count the business portion of a second or third line used in your business. Never deduct the cost of the first line.
tenderhearts 04:10 PM 10-08-2014
ok thank you
Crazy8 03:29 PM 10-09-2014
I am confused by this as well. I only keep a landline because of the daycare. With so many people giving up landlines in favor of cell-only households can't one argue that the landline is for business, the cell is for personal use??
And if your landline is bundled with cable & internet it is probably not 1/3 of the bill - mine is only about $20 of my $200 cable/phone/internet bill!!!
TomCopeland 07:44 AM 10-10-2014
Originally Posted by Crazy8:
I am confused by this as well. I only keep a landline because of the daycare. With so many people giving up landlines in favor of cell-only households can't one argue that the landline is for business, the cell is for personal use??
And if your landline is bundled with cable & internet it is probably not 1/3 of the bill - mine is only about $20 of my $200 cable/phone/internet bill!!!
Yes, you can argue that your landline is your business line (unless you give out your cell phone number only to parents). Yes, you can argue that the cost of your phone line is less than 1/3rd, but you'd need some evidence to support your position.
Unregistered 08:36 PM 12-31-2014
I also get confused on this, I have a landline that i strctly only pay for because of daycare, however I only keep this phone because I need a phone by my emergency phone numbers on the wall and my cell is never there, this phone has never made a phone call, no daycare parents have it, We never use it, its only for emergencies for daycare(literally only daycare, we have a home security system with emergency buttons that my childen even daycare children would use for an emergency). My cell phone is what I use with my daycare families. how does that work, I would in no way keep my landline if it weren't for daycare, but licensing laws state I must have a usable phone next to my emergency numbers. I would definitely be able to prove the phone never gets used personally. But If I can't deduct it, its a waste of money, especially since kids can hit the nifty fire or ambulance buttons on the security system.
Unregistered 08:46 PM 12-31-2014
In regards to my above response(I am registered just didn't sign in) Since if I only had a cell phone it would be considered the first line, but if my husband and I both have cell phones does that mean we have 2 lines? or 3 with the home phone? or more simply put, can my husbands cell phone count as the first line? I just never realized the phone was so confusing.
TomCopeland 07:56 AM 01-01-2015
Originally Posted by Unregistered:
I also get confused on this, I have a landline that i strctly only pay for because of daycare, however I only keep this phone because I need a phone by my emergency phone numbers on the wall and my cell is never there, this phone has never made a phone call, no daycare parents have it, We never use it, its only for emergencies for daycare(literally only daycare, we have a home security system with emergency buttons that my childen even daycare children would use for an emergency). My cell phone is what I use with my daycare families. how does that work, I would in no way keep my landline if it weren't for daycare, but licensing laws state I must have a usable phone next to my emergency numbers. I would definitely be able to prove the phone never gets used personally. But If I can't deduct it, its a waste of money, especially since kids can hit the nifty fire or ambulance buttons on the security system.
Count your cell phone as your first phone - therefore you can't deduct it. Count your landline as your business phone and deduct 100% of its cost.
Unregistered 03:31 PM 01-01-2015
Does my husband's cell phone count as a line? You stated that someone's child's phone would count. So them technically I have 3 lines correct?
TomCopeland 07:49 AM 01-02-2015
Originally Posted by Unregistered:
Does my husband's cell phone count as a line? You stated that someone's child's phone would count. So them technically I have 3 lines correct?
Yes, your husband's or child's cell phone counts as a phone line. So, you can count his as the first line and deduct the business portion of the other two lines.
Jewels 09:33 AM 01-02-2015
Okay I finally logged in, so the last phone questions were me.
Thank you for your response Tom I know we all appreciate your help.
One more question on the phone and then I will have it under control, I did just order a Magicjack to replace my home phone, so that will solve that problem.
How do I work the cell phone bill, since it has 2 phone lines on there, I am the main carrier so my number is the main one, and my husbands is the second line on the bill, but its a family plan. So I'm always confused on how to work that.
Thank you,
Bonnie
TomCopeland 02:42 PM 01-02-2015
Originally Posted by Jewels:
Okay I finally logged in, so the last phone questions were me.
Thank you for your response Tom I know we all appreciate your help.
One more question on the phone and then I will have it under control, I did just order a Magicjack to replace my home phone, so that will solve that problem.
How do I work the cell phone bill, since it has 2 phone lines on there, I am the main carrier so my number is the main one, and my husbands is the second line on the bill, but its a family plan. So I'm always confused on how to work that.
Thank you,
Bonnie
If your cell phone family plan has three phone lines, assume each phone line costs one-third of the total cost. Pick one of the lines as the first line and deduct the business portion of any other lines you use for your business.