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Itemized Deductions Schedule-A


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Old 05-26-2015, 02:26 PM
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Question About Cell Phones

I have been looking for an answer to my question and have been unable to find one. I am getting ready to start in the insurance industry and currently have an out of state phone number. I am going to need to change so that I have an in state number but am wondering if it would be easier for tax purposes to get a separate phone that is only used for business purposes? Either way I go I am guessing I need to get a detailed bill saying what calls were made as well as text messages? How would data work if I don't get a second plan?

Another question that I am curious about. If I purchase things for my business but use a gift card, can I still deduct that?



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Old 05-28-2015, 10:27 AM
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I am getting ready to start in the insurance industry and currently have an out of state phone number. I am going to need to change so that I have an in state number but am wondering if it would be easier for tax purposes to get a separate phone that is only used for business purposes?=======>>>>>>>>>>>>basically, regardless of separate phones, asongas you're self-employed and you use your cellphone for business, you can claim the business use of your phone as a tax deduction. But cellphones are also inextricably linked to your personal lives, so it’s a deduction that the IRS scrutinizes very carefully to make sure personal electronics use isn’t being claimed as a business expense on your Sch C of 1040; you will need to show that your expense deductions were legitimate. Maintain copies of your cell phone bills and keep receipts for your cell phones, cell phone accessories, batteries and chargers as well. In addition, keeping an itemized call list may help you prove you were dialing a customer rather than ordering pizza.

Either way I go I am guessing I need to get a detailed bill saying what calls were made as well as text messages? How would data work if I don't get a second plan?=======>>.Please read below

Another question that I am curious about. If I purchase things for my business but use a gift card, can I still deduct that=======>>>>>>>>>>>>Correct aslongas it is used for your biz purposes and was purchased by your own out of pocket money, you can deduct its costs. However,
In principle, you could get into tricky situations if something more complicated happened ; for example, the gift card was not bought with your own money out of your pocket, but and you never paid tax on it , then, no you can not in principle. However, in reality, many biz owners deduct costs in this sort of situation as they think that IRS audit possibility is lower than 2 or 3%.



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