My phone has two lines , one for me and one for my wife. She obviously uses her line for personal use 100%. I use mine for personal use and my day job use about 10% and 90% for mystery shopping...how would I claim that expense? As 90% of my half?
Edited 1 time(s). Last edit at 02/06/2018 12:38AM by indianyooper.
Do you know the charge for just your line? That's the amount you want to start with -- then, if you use is 10% of the time for shopping, you'd work from that. It isn't a huge deduction, but if you're itemizing, and taking all your business expenses? Mileage, communication, etc...it can cut the taxes on your MS income some.
I just looked at my numbers and it shows a net loss so I'm going to skip the phone entirely, that and it looks like a pain in the rear to figure it out only to get called out. I might have to forgo some of my mileage too it looks liike to show a profit in my first year of MSing.
It's OK to show a loss in your first year (or second, or third) of being self-employed in fact, probably many or most self-employed do. Maybe not in mystery shopping, because overhead is lower than in many start-up endeavors, but you don't need to show a profit....
I'd take the phone expense this year, if it were me.... But it's not! In the event you decide to take it next year, you would indeed expense the cost according to the percentage you use the phone line for business purposes.
I learn something new every day, but not everyday!
I've learned to never trust spell-check or my phone's auto-fill feature.