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If your business views cell phones as a necessary business expense, then they would likely fall under the category of "communication expenses".

For businesses, telephone expenses are typically considered an operating expense. In financial accounting, telephone expenses are typically reported on the income statement during the period in which they are incurred.

Tax deductions are one of the perks of being a business owner. Cell phones and smartphones have become a regular part of business and that means that your mobile bill is now a legitimate business expense that can be deducted from your taxes.

You can deduct a part of a basic cell phone service plan if all of the following conditions are met: the cost of the plan is reasonable. the minutes or data were used for employment purposes. the cost of the plan has been divided between employment use and personal use on a reasonable basis.

Mobile phones are considered to be fixed assets as they usually last for more than a year.

If your business views cell phones as a necessary business expense, then they would likely fall under the category of "communication expenses".

Where to deduct your cell phone bills. As a freelancer or independent contractor, the IRS requires you to add Schedule C to your tax return. You'll use this form to report all your business income ? as well as any business expenses you write off, from your home office expenses to your cell phone bill.

Itemizing requirements Enter your expenses on the appropriate lines of Schedule A. Add them up. Copy the total amount to the second page of your Form 1040. This amount is then subtracted from your income to arrive at the final taxable income number.