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Write Off my iPhone for Taxes as a Business Expense?

Discussion in 'Business & Tax Advice' started by MarkKB, Sep 3, 2012.

  1. MarkKB

    MarkKB Newbie

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    If I mostly do business on an iPhone can I wrote it off as a business expense?
     
  2. Sniper

    Sniper Jr. VIP Jr. VIP Premium Member

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    You don't need to do any "business" on it. It's a write-off either way.
     
  3. damagesmith

    damagesmith Regular Member

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    In the United States i do belive you can write it off. I do not know the law if your in Japan.
    Neverthe less ask your cpa.
     
  4. Lazlo1967

    Lazlo1967 Junior Member

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    Yes, you can usually write off the phone and the monthly fees.
     
  5. Sniper

    Sniper Jr. VIP Jr. VIP Premium Member

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    I'm pretty sure you can write off most consumer electronics actually since they all can potentially have some sort of business use - eg that 60" lcd you always wanted. The gov't won't know if you use it as a monitor or a tv.
     
  6. jessicakihara

    jessicakihara Newbie

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    Good idea. When tax season comes I'm definitely going to ask about my new Galaxy Note since I originally bought it for business purposes, although these days I rarely use it for work... I say ask a pro - every little write off helps.
     
  7. thxflash

    thxflash Power Member

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    Yes, you can. But if you list it as an expense they can also make sure it is for your business. Also, the amount you can write off depends on the usage of the device. For example, 75% use for business is a 75% write-off of the price.

    Hope that helps!
     
  8. chrishas

    chrishas Registered Member

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    Yes you can write it off depending on your usage - assuming you're in the USA. If you have two phones one for home/personal and the other for the business and you pay for the business phone with your business checking account, then you can write it off in full. If you only have the one phone for personal and business both, then you can write off a percentage.

    I have a brick and mortar business and recently got rid of the land-line and merchant machine, replaced it with an iphone and The Square for credit cards. Saves me almost $100 per month.

    Don't try to write off items unrelated to your actual business. The IRS isn't stupid. They have indicators just like Google does and you can flag your returns and then be audited forever. If you file a Schedule C, then your chances of an audit are very high.

    I haven't been audited, but my returns are checked by a real person every year for the past five years. Sometimes I owe more money, and occasionally they return some of my money.
     
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  9. chrishas

    chrishas Registered Member

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    Oh just wanted to tell you a story about taxes and audits.
    My father sold life insurance and insisted on deducting his car at 100%. Even when he semi-retired and only worked part-time. So, of course, he wound up being audited every single year that I can remember. He never won his case - but he sure was persistent.
     
  10. mattstallone

    mattstallone Newbie

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    how much percent do you get back from write offs?
     
  11. farlack

    farlack Newbie

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    I believe its one of those things that you don't pay taxes on. IE $800 iphone, you don't owe taxes for that $800.
     
  12. TheViceroy

    TheViceroy BANNED BANNED

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    In most countries you can definitely right it off. Basically anything you use for business (including your home if you work from home) can be written off to a certain extent.

    For example, I know that one of my friends uses their basement for storage for their eBay business and writes off a certain portion of the household expenses as business expenses.
     
  13. MrFleetwood

    MrFleetwood Newbie

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    Right, but the government can tell which tax return stands out. So if you make 100,000$ and you write off 99,999$ then something is probably wrong and they can audit you.
     
  14. user1577

    user1577 Newbie

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    I write off all my electronics I purchase. As far as I'm concerned I'm on this forum for business reasons right now.
     
  15. kboxer7

    kboxer7 Jr. VIP Jr. VIP Premium Member

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    This is correct. The amount you can "write off" needs to be proportionally representative of the the business vs. personal use of the service/device. Additionally, while a "service" may be written off in whole during a given month etc, a physical item such as a TV or Computer is a capital expenditure and normally needs to be written off over the course of it's "lifetime use."

    For example, if I buy a PC for $1000, and I expect that PC to last for 3 years, I can only write off 33.33% this year on that expense, 33.33 % the next year, etc etc. until I have depreciated the value to $0.

    Please speak with your CPA. I know it costs a little bit of money but they will keep you out of legal trouble and will save you MUCH more than they will cost you.

    Regards,
     
  16. SEO_Alchemy

    SEO_Alchemy Senior Member

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    You can write off whatever you want. Whether or not that's going to be beneficial to you is a different story. That's where the tax consultants come in. It's really too much of a freakin headache to constantly worry about what can and should be written off and how its going to effect your dues. Better pay someone to worry about all that IMO.