Tax Deductible Expenses

3 Replies

Hello BP! So I was creating a spreadsheet to track all my business expenses. 

Is my phone bill tax deductible since I use it for business purposes? 

I offer internet to my downstairs tenant for free (I am house-hacking in an up-down duplex), and I also run my businesses out of my home office. Is my internet bill at least partially tax deductible?

I had security cameras installed on the premises, is that considered tax deductible as well?

Thank you all for the help!

Suggest you talk to your CPA. 

My 2 cents: Cameras have a finite value most take a 3 year life depreciation.   I, a FT realtor taking 50% from my cell phone bill since No one questions I spent 50% on business cause. 

They are cracking down hard on home office deductions esp. if you have another W2 job.

@John Dellinger

Business use percentage of everything you listed is deductible.

If asked, you will need to prove to the IRS how much of your phone bills or camera use is for business. Be reasonable, not greedy. For instance, 50% of the cameras is reasonable when you have 2 units.

Home office is tricky, be careful about it. It must be a part of your home not used for anything but business. You cannot use the same area as a guest bedroom or family TV room. Strictly office. Also, you cannot deduct home office if your business shows a loss already.