Taxpayer asks:
I own a single-family home as rental property out of state that is characterized as investment property on my property insurance and as a non-owner occupied home on my mortgage. My brother manages and maintains the property for me. I bought his cell phone and pay his portion of the monthly charges on my cell phone family plan. Since I pay his monthly charges for the purpose of having him available when a need arises with the rental property, may I deduct the monthly cost of his cell phone bill on my tax return?
Taxgirl says:
I think that you can claim it as a deduction against the income from your real estate property, so long as the primary purpose of that cell phone is business.
If your brother mixes business and personal use on the phone, you’ll want to pro-rate the portion of the phone that’s used for business and deduct only that amount.
Keep in mind that the IRS will not allow a business deduction for the use of a primary phone in your home (land line).
For more information about deductions, see my prior post on the subject.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
