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Patrysha
10-29-2009, 11:58 PM
I have my cell phone in my name, but use it almost strictly for business. I say almost, because occasionally I will use it to call home from the grocery store and once in a blue moon the kids will call while I am out. Do I really have to do a breakdown of the minutes for a percentage?

Also with internet...
We have so many computers for so many purposes (school for boys, biz for me) but none of them are dedicated...do I just make my best guess as to the percentage of the bill to deduct?

Evan
10-30-2009, 12:27 AM
You can estimate a reasonable percentage in both instances. For the cell phone, it looks like it's exclusively used for business, with a few here and there personal calls. It may not be unreasonable to include the entire bill.

For the internet, networks have certainly complicated it. You could be using it 24/7 for business use, while someone else is using it 24/7 for personal use. Does that mean only 50% is deductible? No. Base it off the percentage YOU use for business. That seems like the most reasonable position to take.

vangogh
10-30-2009, 01:52 AM
Patrysha I've thought the same thing. I have a cell phone and a home phone. The cell phone is the number associated with my business, however I do use it for personal calls as well. Some of my clients also use my home phone and my fax machine is connected to my home phone. Both have mixed use, though the cell is mainly a business phone and the home phone mainly a personal phone.

For me the internet is my business so I feel it's ok to claim it all for business purposes. That doesn't mean I've never used it for personal use, but I also wouldn't pay for the current speed I have if it weren't for the business.

When it comes to taxes I just try to be fair. I don't think it has a huge impact overall on what I pay or what refund I might get. I do my best to make a reasonable estimate of what is used for business and what is used for personal use.

huggytree
10-30-2009, 08:36 AM
id deduct the cell phone & internet 100%....if its used for business and NEEDED for your business... your using it on some personal level is just a bonus...

I deduct all my blue jeans since they will all be used for work at some time.
i deduct the milage going to the bank to deliver my checks(its also at my food store, so i get the deduct my trip for groceries)

take full advantage of all the deductions your business delivers you...your not even close to the grey area in my opinion

Evan
10-30-2009, 11:31 PM
I deduct all my blue jeans since they will all be used for work at some time.

I hope nobody from the IRS lurks on these forums. You're an audit waiting to happen, huggytree :D

Patrysha
10-31-2009, 12:12 AM
My husbands overalls were covered by a voucher when he was working in the oil industry (along with boots, gloves and other safety/weather gear) - so there must be a way that work related clothing is deductible or the companies would not be doing it.

Evan
10-31-2009, 01:00 AM
Uniforms are deductible if they aren't ordinarily used for personal use. Some jeans may be deducted if they're going to be used for the business, as they certainly may be destroyed. But if you're going to include your every day jeans in that bundle as well, that is misleading.

Some people cannot deduct uniforms. For example, as an accountant, I cannot deduct my suit as a "uniform". There have also been law suits involving people deducting their haircuts because it was part of their style, and they viewed it as essential to the business. Trust me, you may think it is justified, but the odds are stacked against you if caught.

huggytree
11-01-2009, 09:29 AM
if every single pair of blue jeans will be used for work whats wrong with deducting them?

some will be tomarrow and some will be 6 months from now...whats the difference?

should i deduct some fully and some take 2/3rd of a deduction on?

I keep great records and follow the rules...if its used for work i deduct it...if i also get some personal use out of it thats a bonus.

i get a personal call on my business cell phone...should i only deduct 99.5% of my cell phone instead of 100%?....

i dont think im into the grey area yet....

Evan
11-01-2009, 11:11 PM
if every single pair of blue jeans will be used for work whats wrong with deducting them?

some will be tomarrow and some will be 6 months from now...whats the difference?

should i deduct some fully and some take 2/3rd of a deduction on?

I keep great records and follow the rules...if its used for work i deduct it...if i also get some personal use out of it thats a bonus.

i get a personal call on my business cell phone...should i only deduct 99.5% of my cell phone instead of 100%?....

i dont think im into the grey area yet....

If you need jeans for work, I would use those jeans exclusively for work. While I do not know your personal situation, I'm sure your jeans for work are probably a bit more beat up and are probably only used when you're working (or doing something around the house for work). Then you'll have some "nice jeans" that you won't do work in, but will be something you'd wear to go out to some party and just look comfortable in. What I'm saying is that the "nice jeans" are not a business expense.

Blue-collared workers have much more leeway with deducting "uniforms". Again, as a white-collared worker, I cannot deduct my suit, or any of it -- even if used 100% for business. It's not a "uniform" and can be used for personal use.

For the phone, if a personal call comes in -- sure it's a one time thing. Fine. But if you know you it's 50/50 mixed, or 75/25, or 25/75 -- you need to understand that a 100% deduction is really not justifiable.