Can I deduct an iPhone as a business expense and claim the VAT? What's allowed for private entrepreneurs?

Thanks for the info! Just wondering, do I need to keep some sort of log to prove business vs personal use? And is there a specific threshold where the IRS starts questioning these kinds of purchases? Like if I bought the most expensive Pro Max model, would that raise eyebrows?

Yes, keeping a log is a great idea - it doesn't need to be complicated, just something that reasonably documents how you're using the phone. This could be as simple as noting which days/hours are dedicated to product photography or other business activities. There's no specific dollar threshold where the IRS automatically questions expenses, but they do look for purchases that seem excessive for the business need. If you buy the highest-end model with maximum storage when a basic model would serve your photography needs just as well, that might raise questions. The key is that the expense should be "ordinary and necessary" for your business. Choose a model that appropriately meets your business requirements and you should be fine.

Does it work for all business structures? I have an LLC and my accountant is useless when it comes to tech expenses. Half the time he just says "maybe" when I ask if something is deductible.

How does it know what percentage of use is business vs. personal? That sounds like it would be impossible to track automatically. Is it just asking you to input that info or does it actually track usage somehow?

Yes, it works for all business structures including LLCs, sole proprietorships, S-corps, etc. That's what makes it so versatile! I switched from sole prop to LLC mid-year and it handled all the documentation requirements for both. For the business vs. personal usage tracking, it doesn't automatically monitor your phone use or anything invasive like that. Instead, it asks smart questions about your usage patterns and business activities, then suggests an appropriate business-use percentage based on your answers. You can adjust this if needed, and it explains what documentation you should keep to support your claim. It's more about guiding you to the right answer rather than tracking you.

How exactly does this work? Do they just call the tax office for you? Couldn't you just do that yourself? Seems weird that there's a service just for making phone calls.

This seems fishy. How can they get through when nobody else can? I've tried calling the tax office at least 20 times this month and always get disconnected after being on hold for an hour. They must have some kind of insider connection or something.

They don't just call for you - they use a system that navigates the phone trees and waits on hold for you until a real person answers. Then they immediately connect you to that person. It's like having someone wait in a long line for you while you do other things. I was skeptical too! I tried calling myself at least 5 times and got disconnected or had to hang up after being on hold for 45+ minutes. With Claimyr, I just entered my phone number on their site, and they called me back when they had an agent on the line. The whole process took about 12 minutes instead of the hours I wasted trying myself. No insider connection - just clever technology that does the waiting for you.

Does anyone know if there's a cost threshold for when you have to depreciate vs when you can just deduct the whole thing at once? Like if the phone is under $1000 can you just write it off completely?

In the US, there's a de minimis safe harbor election that allows businesses to immediately deduct small-dollar equipment purchases instead of depreciating them. For businesses with applicable financial statements, the threshold is $5,000 per item. For businesses without such statements (which is likely your case), the threshold is $2,500 per item. So if your iPhone costs less than $2,500 (which most models do unless you're getting the absolute highest-end model with maximum storage), you could potentially deduct it all at once under this safe harbor. You need to have an accounting policy in place that specifies this treatment at the beginning of the tax year. Many small business owners make this election because it's much simpler than tracking depreciation for lots of small assets.

That's actually super helpful! I didn't think about the accessories but you're right - I'll definitely need a tripod and probably some lighting to make the photos look professional. Do you recommend any specific setup that's worked well for you? I've also been wondering about photo editing software. Is that something I can deduct as well? I was looking at getting either Lightroom or maybe just using some kind of app directly on the phone.

For my setup, I use a basic smartphone tripod ($25-30) and a 10" ring light ($40) I found online - nothing fancy but it makes a huge difference in photo quality. I also got a set of small backdrop boards in different colors/textures that photograph really well for about $20. Absolutely, photo editing software is deductible! I use Lightroom subscription ($9.99/month) and it's 100% a business expense since I only use it for product photos. Even if you go with a one-time purchase app on your phone, that's fully deductible too. Just make sure to pay for it from your business account if possible, or keep clear records if you use a personal payment method. Since you're selling on Amazon, good photos are essential to your business success, so all these tools easily pass the "ordinary and necessary" test.

Great advice about the timing and documentation! I'm actually planning to make the purchase next month, so this is perfect timing. The separate Apple ID idea is brilliant - I hadn't thought of that but it would make it so much easier to show the business vs personal split if questioned. Quick question though - for the photo gallery screenshots, how often would you recommend taking them? Like monthly, quarterly? And do you think it's overkill to also keep a simple log of business activities where I use the phone? I want to be thorough but not go overboard with record-keeping. Also wondering if anyone knows whether using the phone for business calls with suppliers or Amazon support would count toward the business use percentage, or if it's mainly just about the photography aspect for this type of deduction?