Work Asset (phone) Purchase

Forum|Forum|3 years ago
April 5, 2023
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I purchased a cell phone for work use and would like to get a deduction for it as a work asset. However, I purchased it through a deal with my cellular phone company where I pay 1 lump sum initially and then small amounts over each monthly payment for the next 2 years along with trading in my old phone, ultimately giving me a lower price overall. I am unsure of how to enter this into TT. Do I just total up the amount I've paid so far and put it in as the cost? Does the trade in account for anything?

Ask the Experts - Refund - April 2023

C

Cynthiad66

If you have an allowable deduction for the phone. It would be the actual amount you are required to pay for the phone. Example: Phone cost $1,000 and you get $300 off for the trade in, you deduction would be $700.

If you are working on a job with a W-2, the cost of the cell phone is not deductible as a business expense. You must be self-employed to deduct business expenses.

f you’re self-employed or own a small business, you can deduct eligible business expenses to pay fewer taxes. These expenses must be common for your type of business and also necessary for your operations.