TAX DEDUCTIONS ARE LEGAL FOR SMARTPHONES

The IRS allows businesses to provide smartphones and tablets such as iPads as a tax-free fringe benefit, simplifying tax implications and eliminating the need for detailed usage records.

Eligibility. This benefit applies to corporations, partnerships, and other entities, and it can be offered to any or select employees, partners, and independent contractors.

Benefits

• Businesses can deduct smartphone costs.
• Recipients don’t pay taxes on this benefit.
• Recipients don’t need to keep records of business and personal use.

Sole Proprietors and Single-Member LLCs

Individual sole proprietors and single-member LLCs taxed as sole proprietors do not qualify for the benefits above because they are not considered employees for this fringe benefit. To deduct their smartphones, they need to track business and personal use.

For more information and the details to take advantage of the tax deduction click on the provided link that follows:

https://drive.google.com/file/d/1Ijn05o6nwkd1zf_7TokUFtHacp70eYVZ/view?usp=sharing