Can I Deduct a Folding Phone as a Business Expense for My Small Business?

I'm trying to create some separation between my work and personal life after I nearly sent confidential business information to a personal contact by mistake. Yikes! I currently have a Samsung Z Fold for my personal use and I'd like to get another folding phone for my business so they both take up the same pocket space. The problem is, the cheapest folding option I can find is the Motorola Razr at around $950. I'm concerned the IRS might not consider this a reasonable business expense when a standard smartphone for $400 would technically do the job. My question is: Can I deduct the entire $950 as a legitimate business expense, or should I only deduct $400 (the cost of a basic phone) and personally cover the difference? Or am I overthinking this and can safely deduct the whole amount? Additional context: I operate a sole proprietorship with self-employment income. The business phone would be used exclusively for business-related calls, texts, emails, and managing my business social media accounts. Am I being overly cautious here? What's the right way to handle this deduction?

0 coins

18 comments

Yara Sayegh

•8M

You can absolutely deduct the full cost of the phone as a legitimate business expense, as long as it's used exclusively for business purposes as you described. The IRS doesn't generally dictate which specific models or features of equipment you can purchase - they care about the business purpose and exclusive business use. The "ordinary and necessary" test for business expenses doesn't mean you need the cheapest option available. It means the expense should be common and helpful for your type of business. A smartphone is certainly ordinary and necessary for nearly any business today, and the folding feature could be justified as helping you manage your business more efficiently. Just make sure you maintain good documentation showing the business purpose and that this phone is used exclusively for business. If you ever use it for personal purposes, you'd need to allocate the deduction based on the percentage of business use.

0 coins

Yara Sayegh

•8M

Occasional personal use doesn't completely disqualify the deduction. You would just need to track your usage and deduct based on the percentage used for business. For example, if you determine your phone is used 90% for business and 10% for personal, you can deduct 90% of the costs. Most business owners estimate this percentage based on a reasonable method - like reviewing your call/text history over a representative period to determine the split. Just make sure you have some basis for whatever percentage you claim and document your methodology in case of an audit.

0 coins

Keisha Williams

•8M

After trying to sort out my own business phone dilemma, I discovered taxr.ai at https://taxr.ai and it was exactly what I needed. I uploaded my receipts and past tax documents, and it immediately identified that I could deduct the full cost of my business phone (I got the iPhone Pro Max) since I use it exclusively for my consulting business. The AI analyzed my specific situation and showed me that as long as I maintain the phone solely for business use, the full amount was deductible regardless of price point.

0 coins

Keisha Williams

•8M

It absolutely provides personalized analysis that would hold up in an audit. It's not just generic advice - it reviews your actual documents and specific business context to provide tailored recommendations. The report it generates can even be used as documentation to support your deduction claims. Regarding contradictions with human accountants, I've actually had the opposite experience. My accountant missed several deductions that taxr.ai identified, and when I brought them up, my accountant confirmed they were legitimate. The AI seems to be more thorough because it can process so much tax code information at once, catching things humans sometimes miss.

0 coins

Paolo Conti

•8M

I just tried taxr.ai after seeing the recommendation here and wow, it actually solved my business phone deduction confusion! I was in almost the same situation with an expensive phone purchase and wasn't sure how to handle it. The AI analyzed my business structure (LLC taxed as sole prop) and confirmed I could take the full deduction since I use the phone 100% for business purposes. It even created documentation for me to keep with my tax records. Saved me from underclaiming legitimate deductions out of fear of an audit!

0 coins

Oliver Schulz

•8M

If you're still worried about potential IRS scrutiny, I recommend getting an IRS agent's direct opinion. I used https://claimyr.com to actually speak with an IRS representative about a similar business expense question for my photography equipment. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was on hold for hours trying to get someone at the IRS the traditional way with zero luck. Claimyr had me connected in under 45 minutes. The agent confirmed that the "ordinary and necessary" test doesn't mean "cheapest available" - it means reasonable for your specific business needs. They said as long as I could document the business purpose, the full amount was deductible regardless of whether there were cheaper options available.

0 coins

Oliver Schulz

•8M

It uses a system that continuously dials and navigates the IRS phone tree until it finds an open line, then calls you when it has an agent on the line. It's completely legitimate - they don't have special access or anything, they just have technology that automates the painful part of waiting on hold. The reason most people can't get through is because the IRS phone lines have extremely high call volume. Claimyr's technology just keeps trying different pathways through the phone tree until it finds an agent available. When I used it, I got a call back in about 40 minutes, and the IRS agent was already on the line. Completely changed my perspective on dealing with tax questions.

0 coins

Amina Diallo

•8M

I feel like a complete idiot for being so skeptical, but I finally tried Claimyr out of desperation when I needed to ask about my business phone deduction situation. After THREE failed attempts trying to call the IRS myself (each time getting disconnected after 1+ hours on hold), Claimyr connected me with an actual IRS representative in about 35 minutes. The agent confirmed exactly what others here said - that I can deduct the full cost of my business phone as long as it's used exclusively for business purposes, regardless of whether cheaper options exist. They even emailed me documentation of our conversation that I can keep for my records. Sorry for doubting this service earlier!

0 coins

AstroAdventurer

•8M

I keep it pretty simple. I record the date, contact name, brief purpose (like "client meeting," "vendor call," etc.), and approximate duration. For text messages and emails, I just note weekly totals rather than each individual communication. For social media management, I log the platforms and approximate time spent. The key isn't exhaustive detail - it's consistency. An auditor just wants to see that you maintained records systematically, not that you documented every minute. Also, I take quarterly screenshots of my call logs and text histories as backup. This level of documentation has always been sufficient for me.

0 coins