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Tax Deductions- Cell Phone

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The taxpayer Bob has a cell phone that he uses for business. Is he allowed to deduct the full value of his cell phone as a business expense? Bob decides to analyze his actual usage for the past year and determines that 60% of his data usage is personal (nonbusiness). Can he still deduct the full amount? Where might he turn for tax advice?

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Solution Summary

Cites US Tax Court decisions regarding the legality of deducting cell phone expenses from personal income tax. References included.

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Bob is not allowed to deduct the full value of his cell phone as a business expense. Neither can Bob claim the depreciation of his cell phone as a business expense, (IRS Publication 529, 2010. Pg 3).

Bob also cannot use an ...

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