Can I Write This Off?

Can I write off a business phone line?

TL;DR

Yes, you can write off a business phone line if it is used exclusively for business purposes.

Detailed Answer

A business phone line is deductible if it is used solely for business activities. If the phone line is used for both personal and business purposes, only the portion attributable to business use is deductible. For example, if 70% of the calls made on the phone line are for business, then 70% of the phone expenses can be deducted. It's important to maintain detailed records to substantiate the business use percentage.

Where to Put It on the Tax Form

Schedule C (Form 1040), Line 25 (Utilities) or Line 27a (Other expenses) for sole proprietors.

Real World Example

A freelance graphic designer uses a separate phone line exclusively for client communications and project management. The monthly bill for this line is $50, which is fully deductible as a business expense.

Calculation Required

A calculation is required for this deduction.

Calculate the percentage of business use by dividing the number of business calls by the total number of calls. Apply this percentage to the total phone expenses to determine the deductible amount.

Audit Risk & Documentation Tips

To minimize audit risk, keep detailed logs of business calls and maintain copies of phone bills. Clearly document how you calculated the business use percentage, and retain any correspondence that supports the business purpose of the calls.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsRemote Workers

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 7, 2025

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