Can I write off a new iPhone as a small business expense for my LLC?

8 Yes, you can definitely write off a cell phone as a business expense for your LLC, but there are some important things to keep in mind. Since you're using it for business purposes like posting ads, making calls, and managing payroll, the IRS considers this a legitimate business expense. The key thing is determining what percentage of the phone use is for business versus personal. If you use the phone 100% for business, you can deduct the entire cost. If it's mixed use (like most people), you need to calculate what percentage is business-related and only deduct that portion. For example, if you use it 80% for business, you can deduct 80% of the costs. Keep good records! Save your receipts for the phone purchase and monthly bills. Document your business usage to support your deduction in case of an audit. This applies to both the initial purchase of the iPhone and your ongoing service plan.

15 Hey, I went through this exact situation with my landscaping business last year! I was constantly using my personal phone for business and it was a mess come tax time. I found this service called taxr.ai (https://taxr.ai) that actually helped me sort through all my business expenses including my phone. What's cool is that they have a specific feature that helps identify business vs personal expenses for things like phones, which was exactly what I needed. Their system looked at my usage patterns and helped me establish a reasonable percentage that would hold up in case of an audit. Plus they helped me set up a proper system for tracking going forward so I don't have the same headache every year. Might be worth checking out if you're trying to maximize your deductions legitimately.

22 Just wanted to follow up about my experience with taxr.ai - I decided to try it after asking about it here. Honestly, it was way better than expected! I uploaded my last year's expenses and they identified nearly $4,800 in deductions I had completely missed, including a proper allocation for my cell phone usage. They provided a clear breakdown showing I could legitimately claim 75% of my phone as business use based on my specific situation. The documentation they provided gives me peace of mind in case of an audit too. Definitely worth it for small business owners trying to properly categorize these mixed-use expenses.

11 If you're having trouble reaching the IRS for clarification on business deductions like this phone situation, I highly recommend Claimyr (https://claimyr.com). I was stuck in the endless IRS phone queue trying to get answers about business deductions for my consulting LLC for WEEKS. Found these guys and they got me connected to an actual IRS agent in about 15 minutes. They basically hold your place in line and call you when they get an agent on the phone. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent I spoke with gave me crystal clear guidance on how to handle my business phone deduction and confirmed that yes, I could write off the percentage used for business purposes. Saved me hours of frustration and probably a lot of money too by getting definitive answers.

16 I'll admit I was totally wrong about Claimyr. After posting my skeptical comment, I was desperate enough to try it because I needed answers about several business deductions including a company phone. They actually got me through to an IRS representative in about 20 minutes! The agent confirmed that I can absolutely deduct the business portion of my cell phone for my LLC. She explained that I should document my business usage (she recommended keeping a log for a few weeks to establish my pattern) and said saving emails/texts related to business is helpful backup. Saved me tons of stress and now I have official guidance I can rely on. Sometimes being proven wrong is actually a good thing!

4 Another option to consider is getting a separate business-only phone instead of trying to split the usage. That's what I did for my food truck business and it makes the deduction super clean - 100% business expense, no questions asked. You can get pretty cheap plans these days if you shop around.

13 Random question - which tax software do you all use for your LLCs? I've been using TurboTax but wondering if there's something better for small business owners that helps catch these types of deductions automatically?

Great question! Yes, you can absolutely write off your iPhone as a business expense for your LLC. Since you're using it for legitimate business activities like posting ads, customer calls, managing payroll, and photographing inventory, the IRS recognizes this as a valid business deduction. The key is determining what percentage is business vs personal use. If it's 100% business, you can deduct the full cost. If it's mixed use (which is more common), you'll need to calculate the business percentage and only deduct that portion. My advice: Keep detailed records of the purchase receipt and monthly service bills. Consider documenting your business usage patterns for a few weeks to establish a reasonable percentage. This documentation will be valuable if you ever face an audit. Also remember this applies to both the phone purchase and your monthly service plan. Since you mentioned using your business credit card, that'll make tracking much easier come tax time!

This is such a common question for small business owners! Yes, you can definitely write off your iPhone as a business expense for your LLC. Since you're using it for legitimate business purposes like customer calls, inventory photos, and managing your dealership operations, it qualifies as a deductible business expense. The tricky part is figuring out the business vs personal usage percentage. You don't need to track every single call - just make a reasonable estimate. Some people keep a usage log for 2-3 weeks to establish their typical pattern, then apply that percentage throughout the year. For your RV dealership, I'd guess your business usage is probably pretty high given all the customer interactions and inventory management you described. Just make sure to keep good records of your purchase receipt and monthly bills. Using your business credit card is smart - it'll make everything much cleaner when tax time comes around. One tip: consider whether getting a dedicated business line might be worth it. It eliminates the percentage calculations entirely and makes the deduction bulletproof. But if you prefer keeping one phone, the mixed-use approach works fine as long as you document it properly.

Just wanted to chime in as someone who's been through this exact situation with my small construction business. Yes, you can absolutely deduct your iPhone as a business expense for your LLC! Since you're using it for legitimate business activities like customer calls, posting ads, and managing operations, the IRS considers this a valid deduction. The percentage calculation doesn't have to be overwhelming - I kept a simple log for about 3 weeks noting business vs personal usage and found I was using my phone about 75% for business. Now I deduct that percentage of both the phone cost and monthly service bills. One thing that really helped me was setting up a separate business Apple ID for work-related apps and downloads. It makes it easier to track business usage and adds another layer of documentation. Also, since you mentioned using your business credit card for the purchase - that's perfect! It creates a clean paper trail. Keep your receipts, document your usage pattern, and you should be all set. The IRS is pretty reasonable about mixed-use items like phones as long as you have a legitimate business purpose and reasonable documentation to back up your percentage.

Absolutely! Your iPhone is definitely deductible as a business expense for your LLC. Since you're using it for legitimate business activities like customer calls, posting ads, managing payroll, and photographing inventory, the IRS recognizes this as a valid business deduction. The key is determining what percentage is business vs personal use. You don't need to track every single interaction - just make a reasonable estimate based on your typical usage patterns. For a used RV dealership where you're constantly communicating with customers and managing operations, your business percentage is probably quite high. I'd recommend keeping a simple log for 2-3 weeks to establish your business usage pattern. Track things like business calls, time spent on work-related apps, posting ads, taking inventory photos, etc. Many small business owners are surprised to find they use their phones 70-80% for business once they actually document it. Since you mentioned using your business credit card for the purchase, that's perfect - it creates a clean paper trail. Remember that this deduction applies to both the initial iPhone purchase and your ongoing monthly service bills. Just multiply your total phone costs by your business use percentage. Keep good records of receipts and your usage documentation. The IRS is generally reasonable about mixed-use items like phones as long as you have legitimate business purposes and can support your percentage calculation.