Announcement

Collapse
No announcement yet.

New Cell Phone plans have tax implications.

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    New Cell Phone plans have tax implications.

    Well, I guess there is something new to watch out for on the cell phone bills. Client noted they purchased a new I Phone 6 for 2014. Apparently now you pay nothing down for the phone and for him $25 month for 30 months to pay off the phone. So, I guess we have to record the phone for the full $750 purchase price and depreciate accordingly, then split out the bill to the Note Payable to the carrier of 25/month to pay off the phone from the monthly charges. They even show the balance due on the phone on the monthly bill which is nice.

    Since this is for a corporation that we keep a balance sheet for, we will have to track the balance.

    I wish this was below the $500 to elect the de minimus safe harbor on the phone.
Working...
X