Smartphones for Business
Deduct the business-use portion of your smartphone for content creation, scheduling, and business communications.
Tax Form
Schedule C, Line 27a
Estimated Savings
$200-800/year
IRS Reference
Publication 535
How It Works
Your smartphone is a critical business tool for content creators - used for filming, editing, scheduling, responding to brand emails, and managing social media. You can deduct the business-use percentage of your phone purchase and monthly bills. Since 2011, cell phones are no longer classified as 'listed property,' making record-keeping requirements much simpler.
IRS Rules & Requirements
- Only the business-use percentage is deductible (e.g., 70% business use = 70% deduction)
- Cell phones are NOT 'listed property' since 2011 - no detailed call logs required
- If you have a 100% dedicated business phone, it's fully deductible
- Both the phone purchase price and monthly service are deductible
- Must be self-employed to claim - W-2 employees cannot deduct
Real Examples
iPhone 15 Pro at $1,200 with 75% business use = $900 deduction
Monthly phone bill $100/month at 70% business use = $840/year deduction
Dedicated second phone line for business = 100% deductible
Common Mistakes to Avoid
- Claiming 100% deduction when the phone is also used personally
- Not tracking business use percentage at all
- Forgetting to deduct monthly service charges
- W-2 employees trying to claim this deduction (not allowed since 2017)
Pro Tip
If most of your phone usage is business-related (filming, editing apps, business calls, social media management), a 70-80% business use percentage is often reasonable for full-time creators.
Related Deductions
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