What expense category do cell phones come under?

There are a few different ways to answer this question, and it really depends on how your business views and uses cell phones. For some businesses, cell phones are seen as a necessary business expense and are categorized as such. For others, cell phones are seen as a personal expense and are not reimbursed by the company. And still others treat cell phones as a mix of both personal and business use, and reimburse employees for a portion of their monthly bill.

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The most important thing is to figure out what makes sense for your business and to be consistent in how you categorize cell phone expenses. Below are a few different ways to look at this question.

Cell Phones as a Business Expense

If your business views cell phones as a necessary business expense, then they would likely fall under the category of "communication expenses". This could include things like your monthly cell phone bill, any business-related apps or services you use, and any other related costs. You would then deduct these expenses on your business taxes.

Cell Phones as a Personal Expense

If your business does not reimburse employees for their cell phone expenses, then you would likely categorize them as a personal expense. This means that the cost of your cell phone and any related expenses would not be tax-deductible. However, you may be able to deduct a portion of your cell phone bill if you use it for business purposes and keep track of your usage.

Cell Phones as a Mix of Personal and Business

If your business reimburses employees for a portion of their cell phone bill, then you would likely categorize them as a mix of personal and business expenses. This means that the cost of your cell phone and any related expenses would be partially tax-deductible. For example, if you use your cell phone for 50% business and 50% personal use, you could deduct 50% of the cost on your taxes.

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