Cell Phones

[Bird Legs]

Employees of a C Corp. are furnished cell phones to use because of the type of
business this is. They do not work in the office but are scattered over the city but
they do have to maintain contact with each other and the central office.
The corp. is in the business of gathering information, filing permits, etc for a specific
industry.
As a fringe benefit, the company is wanting to furnish a cell phone to the family members
of the employees. Would this be acceptable and deductible as a business expense?
Thanks for your response.

[jainen]

Yes

Yes, the business can deduct it is employee compensation, and include it on the W-2 as a taxable fringe benefit.

[Bird Legs]

Jainen

Thanks for the response. I was thinking the same thing. Just wanted to make sure.

[jainen]

I'm glad

I'm glad we agree. Now tell me what you think of my answer to your questions about the GAO study.