< Back to IRS

Mila Walker

Can I write off a new iPhone for my LLC business expenses?

I run a small used RV dealership as an LLC and I'm thinking about getting a new iPhone. Since I use my phone for pretty much everything business related (posting listings online, taking customer calls, managing payroll, etc.), I was wondering if I could write this off as a business expense? If it's deductible I'd rather just use my business credit card when I buy it. But if not, no big deal - I'll just use my personal card. Just trying to make things cleaner for tax filing. Anyone have experience with this? Thanks for any input!

Logan Scott

•

Yes, you can definitely deduct the cost of a cell phone as a business expense if you're using it for business purposes! Since you're an LLC and using the phone for posting ads, taking calls, and handling payroll, this would qualify as a legitimate business expense. The key thing is to track what percentage of the phone usage is for business versus personal. If you use it 100% for business, you can deduct the entire cost. If it's partially personal, you should only deduct the business portion. Most business owners estimate a reasonable percentage (like 80% business/20% personal) and document this in their records. Since you already have an LLC with a business credit card, I'd recommend using that card to purchase the phone - makes the paper trail much cleaner for tax purposes.

0 coins

Chloe Green

•

If I use my phone like 60% for business and 40% for personal stuff, how do I prove that to the IRS if they ask? Do I need to keep a log of all my calls or something?

0 coins

Logan Scott

•

You don't necessarily need to log every single call, but you should have a reasonable method for determining your business usage percentage. Most small business owners make a good faith estimate based on their typical usage patterns. If you're concerned about documentation, you could do a sample tracking period where you note business vs personal usage for a couple weeks to establish your percentage. Your phone bill can also help since it shows call logs that you could mark as business or personal. The key is being consistent and reasonable with whatever method you choose.

0 coins

Lucas Adams

•

Just wanted to share my experience with this exact situation! I own a small landscaping business and was shocked at how much easier my life got when I started using taxr.ai for my business expense tracking. I was always confused about what I could write off (trucks, equipment, phones) until I started using this tool. For your cell phone situation, they actually helped me understand exactly how to document the business usage portion. I uploaded my phone bill through https://taxr.ai and they automatically categorized which calls/texts were business-related based on my contacts. Saved me hours of manually sorting through everything and gave me confidence I'm not missing deductions I'm entitled to!

0 coins

Harper Hill

•

Does it work for other mixed-use items too? Like if I use my laptop for both work and personal stuff?

0 coins

Caden Nguyen

•

How does it know which contacts are business vs personal? Seems a little too good to be true tbh. I've got clients who sometimes become friends and vice versa.

0 coins

Lucas Adams

•

Yes, it absolutely works for other mixed-use items like laptops, tablets, and even vehicles! You just need to establish a reasonable business-use percentage and it helps you document and track that. For distinguishing between business and personal contacts, you can manually categorize them initially, and the system learns over time. It's pretty smart about recognizing patterns, but you can always override its suggestions. I had the same situation with clients becoming friends, and I just marked which interactions were business-related vs personal.

0 coins

Caden Nguyen

•

I was super skeptical about trying yet another tax tool, but I'm honestly blown away by taxr.ai. I decided to try it after seeing it mentioned here since I had the exact same question about my phone for my consulting business. I uploaded my last three months of phone bills and it identified a 73% business usage pattern based on my call records, texts, and data usage timing (apparently most of my personal stuff happens evenings/weekends, while business is weekday daytime). That specific percentage documentation made me feel way more confident about taking the deduction. Seriously wish I'd known about this for past years - would have saved me so much time figuring out what percentage to use!

0 coins

Avery Flores

•

If you're like me and waste hours trying to call the IRS to get answers about business deductions, you should try Claimyr. I was trying to get clarity on some LLC expense rules (including tech purchases) and kept hitting that "due to high call volume" message from the IRS for DAYS. Found https://claimyr.com and it seriously changed everything. They got me connected to an actual IRS agent in about 15 minutes when I'd been trying for over a week on my own. The agent confirmed my iPhone would be 100% deductible since I have a separate personal phone. You can see how it works here: https://youtu.be/_kiP6q8DX5c - way better than listening to that hold music for hours!

0 coins

Zoe Gonzalez

•

How does this actually work? Do they have some special connection to the IRS or something? Seems weird that they can get through when nobody else can.

0 coins

Ashley Adams

•

Yeah right. Nobody gets through to the IRS that fast. What's the catch here? They probably charge like $100 just to wait on hold for you.

0 coins

Avery Flores

•

They use an automated system that continually calls the IRS and navigates the phone tree until it gets through, then it connects you once a spot opens up. It's basically doing what you'd do manually but with technology that doesn't give up. There's no special connection - they're just persistent in a way humans can't be. They keep trying hundreds of times per hour if needed until they get through, which would drive any normal person insane to do manually. It's actually pretty simple technology but incredibly effective for dealing with overwhelmed phone systems.

0 coins

Ashley Adams

•

OK I need to apologize for being so negative on that Claimyr thing. I was having a terrible day dealing with tax stuff and was super skeptical, but I tried it this morning as a last resort. I've been trying to confirm some details about business equipment deductions for my LLC for WEEKS. Got connected to an actual human at the IRS in 17 minutes when I'd wasted like 6+ hours of my life trying before. The agent confirmed that for my situation (single-member LLC) I can deduct 100% of a cell phone IF I have a separate personal phone, otherwise I need to track business use percentage. Honestly still shocked this worked. Posting this because I feel bad for being such a jerk before.

0 coins

Something nobody's mentioned yet - if you're going to write off a new iPhone, make sure you're depreciating it correctly. Since it's over $200, you should technically depreciate it over 5 years using MACRS depreciation or take Section 179 or bonus depreciation to write it off all at once. I made the mistake of just expensing mine completely in the first year without doing the proper depreciation paperwork and got a letter from the IRS later. Not worth the headache!

0 coins

Aaron Lee

•

Wait really? I thought phones could just be expensed in the year you buy them? My accountant never mentioned anything about depreciating my business iPhone.

0 coins

Your accountant might be using de minimis safe harbor election, which lets you immediately expense items under $2,500 (or $5,000 with audited financial statements) instead of depreciating them. Many accountants do this for phones because it's simpler than tracking depreciation for smaller items. If you didn't explicitly make this election on your tax return though, technically phones should be depreciated. It's one of those areas where practice sometimes differs from the strict interpretation of tax law. As long as your accountant is handling it consistently and making the proper elections, you're probably fine.

0 coins

I just want to point out that if ur using QuickBooks for ur LLC, there's a feature where you can track business expenses for mixed-use items like phones. I just put in 75% for my iphone and it automatically calculates the deductible portion when i enter the monthly bills. Super easy and creates a paper trail if you ever get audited!

0 coins

Michael Adams

•

Does that work for the actual purchase of the phone too, or just the monthly service charges?

0 coins

It works for both! You can enter the phone purchase as an asset and set the business-use percentage. Then for the monthly bills, you can create a recurring transaction with the same percentage. QuickBooks will track everything consistently. If your business use percentage changes over time, you can update it too. I actually increased mine from 75% to 85% when I started taking more client calls after hours. Just make sure you have some reasonable basis for whatever percentage you're claiming.

0 coins

Anthony Young

•

Great question! I'm in a similar situation with my small business. One thing I'd add to what others have mentioned is to document your decision-making process. I keep a simple spreadsheet showing how I determined my business use percentage - things like "take client calls during work hours," "use for business banking apps," "post inventory photos," etc. Also, since you mentioned you're thinking about using your business credit card - definitely do that! It creates a clean paper trail and makes it obvious this was a business purchase. I learned this the hard way when I mixed personal and business purchases on the same card and had to sort through months of statements later. One last tip: if you're getting a high-end iPhone (like the Pro models), keep the receipt and any documentation about why you chose that specific model for business purposes. Sometimes the IRS questions whether premium features are "necessary" for business use, so having a business justification ready can save headaches later.

0 coins

This is really helpful advice! I never thought about documenting the reasoning for choosing a specific model. I was actually looking at the iPhone Pro Max because of the better camera for taking high-quality photos of my RV inventory, but wasn't sure if that would fly with the IRS. Having that business justification written down ahead of time makes total sense - especially for higher-end purchases where they might question the necessity. The spreadsheet idea is great too. I'm pretty bad at keeping records but that seems simple enough that even I could stick with it. Thanks for sharing your experience with the mixed personal/business card situation - definitely want to avoid that headache!

0 coins

Adding to what everyone else has said - make sure you understand the difference between deducting the phone purchase versus the monthly service. The phone itself (especially a new iPhone) is considered equipment and might need to be depreciated over several years unless you elect Section 179 or bonus depreciation to expense it immediately. The monthly service bills, on the other hand, are operating expenses that you can deduct each year based on your business use percentage. Since you're an LLC, you have some flexibility here. If you're planning to expense the phone purchase in full this year (rather than depreciate), make sure your tax preparer knows so they can make the appropriate elections on your return. This is especially important if you're buying a higher-end model that costs over $1,000. Also, I'd recommend taking photos of your current phone setup and any business apps you use - this documentation can help support your business use percentage if questions come up later. Good luck with the RV business!

0 coins

IRS AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today