- quote -

The difference between $25/month for low speed with DHCP
(dynamic IP address), and $75/month for higher speed and a
fixed IP address (and being allowed to run servers),
perhaps.

Seth

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Harlan Lunsford wrote:

- quote -

This was my concern.

- quote -

This is the reason I wanted to deduct some. I think what I
will do is deduct the difference between what a standard
residential package + DSL costs and the business + DSL.
Since the capability I get with the business level account
is directly tied to my work I can't see that the IRS is
going to disallow it, especially in light of the fact that I
still show (and pay taxes) on an amount significantly
greater than the amount of the deduction.

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es330td wrote:

- quote -

One rule speaks of "first phone line into a house is not
deductible". Origin of this rule was propensity of employees
to try to deduct their home phone as business expense.

However a true "business" line cost more than residential
service, and for good reason. The premium we pay is to
ensure really fast repair service, much better than I get
for my home line.

So yes, by all means, deduct away on your schedule c.

Santa ChEAr$,
Harlan Lunsford, EA n LA

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"es330td" <es33...[at]gmail.com> wrote:

- quote -

If this is the only line into the house, you are out of
luck. The IRS considers the first line into the house to be
personal. You can only deduct a second line into the house
as a business expense. The solution is to get a minimal
personal line for about $25/month and then deduct the
business line on Sch. C.

Dennis

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es330td wrote:

- quote -

You can deduct the business long distance and the business
portion of the DSL. Typically, you will not be allowed to
deduct your base local phone rate if you have just one line.

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es330td wrote:

- quote -

The PRIMARY phone line is presumed to be for personal
purposes and is not pro-rated (all or nothing). LD charges,
on the other hand, could be expensed by the business.

Same thing with the internet connection. What is the
incremental cost if also used for business purposes?

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I have a business phone line at my home and business class
DSL service. My family uses the phone and Internet
connection for their personal needs. I have a business
phone line and DSL account because I have a Sched C sole
proprietorship consulting business for which 100% of the
income is generated by work I do through said connection.

Total costs are about $150/month. It seems to me that as
the source of the income some portion of that must be
deductible. It also seems that some portion could be
disallowed because it is shared by non-business users.

How much, if any of this, can I deduct on my Schedule C?

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