Client is a registered nurse and goes to nursing homes, and homes for various services. She has a office in the home. She has a cell phone for personal use but no land phone in the home. She needs a land phone for her fax only. Would this be a special case where the first line would be deductible if she chose to install?
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Last edited by zeros; 11-12-2009, 09:14 PM. -
Is she able to substantiate the telephone expense? Will she be using the fax line strictly for business? Can she keep track of the cellphone time used for business?Originally posted by zeros View Post
Maybe using a more direct method of determining her phone use would help her take the proper amount of deduction. -
In a word NO
Unless there has been a change I am not aware of the first land line into a residence is not a tax deduction. I don't think we have the creativity to argue that well in this case the line is used only for business or mainly for business. If there are charges that can be shown to be attributable to business calls (such as long distance charges) those may be deducted. If she pays a fixed amount for "unlimited long distance" in addition to a charge for just having the line into the home then I would let her keep a log of calls/faxes and deduct the appropriate percentage of the fee for the "unlimited long distance". (I use the quotes because most plans do have limits in the fine print but they may still offer a savings over paying by the minute.)Comment
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Don't Think So
I was around several years ago when the IRS wrote a regulation that forbid any allocation to deductible expense for the FIRST telephone line into a personal residence. I thought at the time it was a good rule because my clients were pushing me to deduct their telephone bill. Long distance portion of the bill was deductible if the calls had a business purpose.
The rule is now obsolete - too many cell phones today, people are even having land lines taken out. Many people don't even pay separately for long distance either.Comment
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Might want to suggest a service like www.efax.com. That should be 100% deductable and probably cheaper too.
ChrisComment
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If the phone line is dedicated exclusively to the business of course it is a legitimate business tax deduction. If you fear being questioned in an audit keep a log.Originally posted by zeros View PostComment
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Bright-Line drawn here by the IRS
The IRS states that the basic charges for the first telephone line into a residence are non-deductible, period. Doesn't matter how much is business use. If she had a second line, or incurred additional charges on the first line for business, like a long distance plan, she could deduct those. But she can't, under any circumstances, deduct the first line into her home.Originally posted by jimmcg View Post
See page 9 of Pub 587, or page 5-16 of TTB Deluxe or 1040 edition.
I went to a digital fax service (myfax.com) for just this reason. My first line is now only for the alarm system and my in-laws."Congress has spoken to this issue through its audible silence."
Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?Comment
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What are you
doing with the cell phone as far as deductions?Comment
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The first line
into your home, according to AT&T can be designated a business line, the first line is not required to be a personal phone line.
Make sure it is installed as a business line, the phone companies charge more, and if you want a yellow page add you must have a business line.Confucius say:
He who sits on tack is better off.Comment
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Just throwing this out....
Does she deduct her cellphone?
If yes, no deduction for the land line, it would be one or the other.
If not, could the "first line" be her cellphone, therefore the fax line would be deductible as her second line? She could keep a log of all faxes sent/received. But then again maybe it wouldn't be worth the effort.Comment
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It still doesn't matter
Unless there is a second line in the house. The first line into a home, billed as a business line or not, is not tax deductible.Originally posted by RLymanC View Post
ATG"Congress has spoken to this issue through its audible silence."
Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?Comment
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What about...
Just playing devil's advocate here: what about a business line into her qualified home office?
But, if she doesn't even have a land line, then why isn't she using one of those services that fax directly to her cell or computer? That way, she can receive business faxes while out performing her duties with her cell at her side. Why buy a fax machine, install a land line, pay for it with or without deductions, and still not be able to read a fax until she returns home from seeing patients all day?Comment
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OH? Not even if that business line is connected solely to the office in home?Originally posted by AuditorTurnedGood View Post
If the family relies solely on cell phones for personal calls, I would take the business
line with it's attendant higher fees as a schedule c deduction any time.ChEAr$,
Harlan Lunsford, EA n LAComment
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Take it to the appellate level if the tax benefit is worth the cost.....You'l win.Originally posted by AuditorTurnedGood View PostComment
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Sorry, this one is really clearly stated..you will not win on it.Comment
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