More than ever, we find that our world is attached to the phones that walk around in our pockets. They are a small computer that allows us to have the world at our fingertips. These phones are not only used for personal use, but many businesses rely on their phones to succeed as well. When it comes to doing your taxes as a business owner, there are several things that you can deduct and save money come tax time. It can leave business owners wondering if they can deduct their cellphones as well. Mark Dicus & Company is here to talk about what it takes to be able to deduct your cellphone from your taxes when you own your own business.
What are the Rules for Writing Off Your Phone?
The answer to whether or not you can write off your phone at tax season is, absolutely. However, like everything else with your taxes, you are going to have to follow certain rules when it comes to this item. First of all, you have to itemize your deductions to include a phone write off; and you also must only use your phone for business purposes. For those that are self-employed, you can enjoy the benefits of writing off the initial purchase of your phone as well as the monthly bill too. However, it can’t be reiterated enough that in order to write off your phone expenses, you need to be using this phone strictly for business.
Phones Used for Personal & Business Purposes
There are many people that will use their phones for not only their business, but their personal lives as well. When this describes your situation, don’t worry, there is a way for you to write off phone expenses as well. This will just require a little bit more work. It will be important for you to keep your monthly statements for your tax records because you will only be able to deduct a portion of your phone expenses for your taxes when this is the case. You need to be able to refer to your monthly statement to make sure that you are only deducting the portions that you are allowed to.
Deductible Business Expenses
It is important to keep in mind that you don’t only have a phone that you can deduct from your taxes when you own your own business. You can also deduct other electronics like printers, computers, software, leased equipment and other items that are necessary for you to generate your income. It is just important that you keep the receipts for all of these purchases so that you can have the documentation needed to deduct them.
Tax Preparation, Filing & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you own your own business and aren’t sure what you can and cannot deduct from your taxes, you can rely on Mark Dicus & Company to help you sort it all out. We offer tax preparation services to ensure you aren’t overpaying on your taxes each year. Call us today!