Taxpayer asks:
The reader who asked the question (regarding your Feb 28 cell phone deduction post) seemed to presume she’d deduct the cost of the “extra line” (which is usually a minimal cost), but let’s say she was just getting her phones set up from scratch. Could she have given her brother the primary line (which incurs the bulk of the cost in most carriers’ plans), deducted that amount (subject to the qualifications you described), and then set up her personal number as the “extra line”?
Taxgirl says:
I think so. There is nothing in the Code (of which I am aware – correct me colleagues if I am wrong) that requires you to be the most cost effective when taking a deduction. And it achieves the same result for business purposes – just at a different cost.
Anybody think differently?
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I was wondering about this too. The cell companies call these “family plans”.
But I noticed the wireless company offers plans for businesses. If the primary use of the line is for business, then can you really get a “family plan” and deduct the largest line’s cost as a business expense?