Telephone expense

Usually this includes a phone you have in your office. However many people have either only a cell phone, or may have more than one cell phone, one of which is used only for business. If you have a phone in your house it cannot be deducted as a phone expense unless you have a 2nd line that you can claim as a home office or fax line. As for cell phone bills, you need to make a separation between business use and personal use and expense only the business portion on your books. For instance, if your cell phone is used 50% for your business, then deduct that portion of your bill on your books. You may be able to accomplish this by paying one month out of your business account and the following month out of your personal account.