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Old 01-27-2007, 04:11 AM
parrisbraeside@yahoo.ca
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Default Re: T2124 Business: Telephone Utilities

"Learn" <angie_sc...[at]yahoo.ca> wrote:

- quote -

> In the event that I use a cell phone for both personal and
> business use how would I divvy up and separate the expense
> in an accounting software if I pay a flat monthly fee? Would
> i just calculate the percentage of personal calls vs
> business calls based on minutes? Then use this formula for
> the rest of the year's invoices?
> Would i use the following Tax Line?
> T2124 Business: Telephone Utilities
> Please help, my head hurts form all of this.


The CRA's stance of a phone used for both personal and
business is that there is no division between personal and
business. As a result, I generally recommend to people to
never use the cell phone for personal calls.

In your case, you have a cell phone used for both. You can
not count the monthly connection, 911 service and all the
other fees. You may count only the long distance charges
associated with the business calls. You claim on the
Telephone line of the 2124.


<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #1  
Old 01-25-2007, 07:02 AM
bono9763@yahoo.com
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Posts: n/a
Default Re: T2124 Business: Telephone Utilities

"Learn" <angie_sc...[at]yahoo.ca> wrote:

- quote -

> In the event that I use a cell phone for both personal and
> business use how would I divvy up and separate the expense
> in an accounting software if I pay a flat monthly fee? Would
> i just calculate the percentage of personal calls vs
> business calls based on minutes? Then use this formula for
> the rest of the year's invoices?
> Would i use the following Tax Line?
> T2124 Business: Telephone Utilities
> Please help, my head hurts form all of this.


If this is your only cell phone and you use it for both
personal and business purposes, the IRS position is that
none of it is deductible as business expense. This is
similar to the first phone line into the house being
considered personal use and only a second phone line can be
deducted as business expense. Only if there are additional
charges for business use (such as exceeding your monthly
minutes) can you deduct your cell phone charges as a
business expense.

Dennis

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 
Old 01-25-2007, 07:02 AM
Paul Thomas, CPA
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Posts: n/a
Default Re: T2124 Business: Telephone Utilities

"Learn" <angie_scrub[at]yahoo.ca> wrote

- quote -

> In the event that I use a cell phone for both personal and
> business use how would I divvy up and separate the expense
> in an accounting software if I pay a flat monthly fee? Would
> i just calculate the percentage of personal calls vs
> business calls based on minutes?


Yes.

- quote -

> Then use this formula for
> the rest of the year's invoices?


You should do that (divvy up between personal and business)
each month.

- quote -

> Would i use the following Tax Line?
> T2124 Business: Telephone Utilities


Yes.

- quote -

> Please help, my head hurts form all of this.

It's not that difficult for most of the common expenses of a
business.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 01-24-2007, 06:34 AM
Learn
Guest
 
Posts: n/a
Default T2124 Business: Telephone Utilities

In the event that I use a cell phone for both personal and
business use how would I divvy up and separate the expense
in an accounting software if I pay a flat monthly fee? Would
i just calculate the percentage of personal calls vs
business calls based on minutes? Then use this formula for
the rest of the year's invoices?

Would i use the following Tax Line?
T2124 Business: Telephone Utilities

Please help, my head hurts form all of this.

thanks

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

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