Cell Phones

[SunTaxMan]

I got to thinking again. Sometimes that leads me to problems.

I have always assumed that the method of documenting the business use of any cell was minutes used - but I can't find anything to verify that. What I did find was that it is necessary to "document the business use" - but not anything specific as to HOW to do that - what method.

As I look over a recent cell phone bill, I find that MINUTES USED is 33% of total for business purposes. But when I track the number of CALLS MADE during the month, I find that to be 55% of the total number of calls made (inbound and outbound) for business purposes.

I realize consistency of method used is significant, but at January 1, this would seem a defining time to change the method. I suspect my CALLS MADE would be predominately business all year long, even if MINUTES USED was predominately personal (or at least other than business).

Thoughts?

[chuck]

One way to look would be like daycare minutes used. But if calls made bus vs calls made total works better, I'd think being consistant is what would be most important

[Pacun]

My clients, have cellular phones because they need it for work. I tell them that the IRS will not allow them to expense the full bill, but I have read somewhere that auditors will allow half of the cost of cell phone service.

Let's say that you have an unlimited plan that costs you $80 monthly. In a year, the cost will be $960. Half of it will be $480. I don't think, the IRS will ask clients for detailed phone calls for 12 month from 2 years ago just to go through the business and personal calls. In any event, who will remember what calls were business or personal just by looking at numbers 2 years later. Let's say that the IRS checks the bills and realized that 40% were business calls. Then they will say, we are going to deduct $96 from your phone expenses.