Can I Write This Off?

Can I write off smartphone used 50% for business?

TL;DR

Yes, you can write off 50% of your smartphone expenses if it is used 50% for business purposes.

Detailed Answer

The IRS allows you to deduct expenses for a smartphone if it is used for business purposes. If the phone is used 50% for business and 50% for personal use, you can deduct 50% of the costs associated with the phone, such as the purchase price, monthly service charges, and any related accessories. It's important to maintain records of your business usage to substantiate your claim.

Where to Put It on the Tax Form

Schedule C, Line 27a for sole proprietors or Form 1120, Line 26 for corporations

Real World Example

A freelance graphic designer uses their smartphone for client communications and project management apps. They determine that 50% of their phone usage is for business, so they deduct half of their annual phone bill and half of the cost of a new phone purchased during the year.

Calculation Required

A calculation is required for this deduction.

Calculate the total annual cost of the smartphone, including purchase price and service charges. Multiply this total by the percentage of business use (e.g., 50%) to determine the deductible amount.

Audit Risk & Documentation Tips

To minimize audit risk, keep detailed records of your phone usage, such as call logs, emails, and app usage reports that demonstrate business use. Retain copies of bills and receipts, and document the method used to determine the percentage of business use.

IRS Reference

IRS Publication 535, Business Expenses

Relevant Industries

FreelancersSmall BusinessConsultantsSales Professionals

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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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