Cell Phones

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  • Bird Legs
    Senior Member
    • Jun 2005
    • 990

    #1

    Cell Phones

    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
    Banned
    • Jul 2005
    • 2215

    #2
    Yes

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

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    • Bird Legs
      Senior Member
      • Jun 2005
      • 990

      #3
      Jainen

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

      Comment

      • jainen
        Banned
        • Jul 2005
        • 2215

        #4
        I'm glad

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

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