Posted by Debbie_NJ on 2/11/06 3:59pm
Msg #96413

Tax Question - Expenses

Can someone tell me how they handle the cost of their cell phone, internet connection, etc.? Assuming we all use our cell phones and internect connection for personal use as well as for business use. I was planning to try splitting it 50/50 (between business and personal) but then I read in a book about expenses you can deduct that if it's not at least 60/40 you wouldn't be able to deduct it. Does anyone know? TIA

Reply by Mung/CA on 2/11/06 4:40pm
Msg #96418

my experience

Hey Debbie. I just did my taxes with H & R Block. Tax lady siad I couldn't deduct my cell bills because I also used it for personal calls. She said that I would have to use it ONLY for business in order to deduct it. The same goes for home office/phone. I am currently looking for an additional cell phone to use as a personal phone. I plan to keep my current # as a business only. I hope this helps.

Reply by Sandy_MD on 2/11/06 6:25pm
Msg #96427

Re: my experience

on the first line into your home the normal costs are not dedutable, but if used for business any long distance can be deducted. If you have a second line that is 100% business then you can use the expenses for that one.

Reply by Shane_OH on 2/11/06 11:44pm
Msg #96464

H&R Block?

Oh, you probably missed a ton of deductions going to an H&R Block. When it comes to taxes, especially in this business, you can't beat a CPA. They find ALL of the Deductions.

H&R Block tends to hire & train people to put your taxes together, and those people get paid a low hourly wage.... It might cost more for a CPA, but its well worth it.

Reply by LisaWI on 2/12/06 1:11am
Msg #96467

Re: H&R Block?

If you feel comfortable claiming those as deductions for your expenses, as in that is the majority use of those things, then go for it. My cell phone is used for people calling me for appointments, where maybe 5% is used for personal calls. You can bet Im going to take it as a write off. I never had a use for a cell phone until I started this biz.
On different note: The IRS is only going to question if there is a really big red flag. Be honest about it, and everything will be fine.
I am not an attorney, and dont care to be one, but this is not legal advise.

Reply by Mung/CA on 2/12/06 1:22am
Msg #96469

Hey Shane. Cost more?

I hope not. I paid $500.00 for my taxes at H & R Block this year. I used to have a sweet older lady (CPA, Enrolled Agent) in San Jose do my taxes for many years but she is no longer with us unfortunately. I agree about H & R. I'll probably go with somebody else next year although, in their defense, they did find a bunch of deductions. Maybe I'll try Taxpro next year.

Reply by Debbie_NJ on 2/12/06 5:26am
Msg #96474

Thank you all for your responses. Someone on gomobilenotary.com told me that Turbo Tax asks you questions to guide you through dividing up your expenses. Since I always use Turbo Tax, I'll see what the program does. Thanks again.