Question

Cell Phone Depreciation when purchased on a monthly plan

Forum|Forum|1 year ago
March 6, 2025
1 reply
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With our AT&T plan, you can't purchase a new I-phone outright. So you pay a reduced amount for the phone ($20 per month) for three years. You do pay the sales tax up front (@$200). Do I list this as a depreciable asset - if so, how much) or do I count it as part of my monthly cell phone service expenses?

Also, the basic cost of cell service is the same - no matter how much of the time it's used exclusively for business. Why isn't that total cost deductible. You can't reasonably buy partial service.

Not A Product Question

V

Vanessa A

The IRS says you need to allocate expenses between business and personal, it doesn't matter if you would pay the same or not. It is like a home office, if you have the room in your house and you use it for other things, even though it is there, it is not eligible to be a home office.

No. You would not list it as a depreciable asset. You can list the phone as either a lease expense or just include it with your monthly cell phone bill.

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