It's tax season, so I'm not surprised that I'm getting questions about home business tax deductions. I got this question from a reader:
The short answer is no. But we're talking about taxes, so of course there is more to it. First of all, you are not allowed to take a deduction on the first line into your home. If you get a second line for your home business, that would be tax deductible. If you use your second line for something other than business, you will have to figure out what percentage of your phone use is for business, and only take the percentage as a home business deduction.
You can also take a home business tax deduction on long distance phone calls you make for your business. Before I started using Skype for international calls, I regularly deducted the money paid for calling overseas. Incidentally, you can deduct the money you spend for business use on Skype.
Find out more about business deductions from IRS Publication 334.
Disclaimer: I am not a tax professional. Before taking any home business deduction, check with an accountant or other tax professional.
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