Is a mixed-use phone bill line 25 or line 13?

The handset is an asset, so the business share of the purchase price is recovered on line 13 through Form 4562 while the monthly plan is split on line 25.

Is a mixed-use phone bill line 25 or line 30?

The basic charge for the first landline into your home is never deductible even with a qualifying home office, so do not route it through Form 8829 as an indirect cost.

How do I split a phone bill on Schedule C? Line 25

Q: How do I split a phone bill on Schedule C?

A mixed-use phone bill belongs on Line 25, utilities. Deduct the business share of the monthly service charge as a utility on line 25 and treat the rest as personal. The accepted method is a usage-based percentage: take a representative sample, typically one or two full billing periods, count business minutes, messages and data against the total, and apply that percentage to the plan charge for the year. Cell phones are no longer listed property, so there is no statutory log requirement, but the percentage still has to rest on something you wrote down rather than a round number chosen at filing time. A second line or a second handset used only for the business is 100 percent, which is why a dedicated business number is the simplest answer to this whole question.

Short answer Schedule C, Line 25 Utilities

A mixed-use phone bill belongs on Line 25, utilities.

Why line 25

Deduct the business share of the monthly service charge as a utility on line 25 and treat the rest as personal. The accepted method is a usage-based percentage: take a representative sample, typically one or two full billing periods, count business minutes, messages and data against the total, and apply that percentage to the plan charge for the year. Cell phones are no longer listed property, so there is no statutory log requirement, but the percentage still has to rest on something you wrote down rather than a round number chosen at filing time. A second line or a second handset used only for the business is 100 percent, which is why a dedicated business number is the simplest answer to this whole question.

Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a mixed-use phone bill lands on Line 25 without you sorting it.

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What a mixed-use phone bill is confused with

Line 13, depreciation and section 179 expense deduction: The handset is an asset, so the business share of the purchase price is recovered on line 13 through Form 4562 while the monthly plan is split on line 25.
Line 30, line 30, business use of your home: The basic charge for the first landline into your home is never deductible even with a qualifying home office, so do not route it through Form 8829 as an indirect cost.
not deductible, not deductible: The personal share is not deductible anywhere, so a 60 percent business phone produces one deduction and one draw, not a full deduction on the business card.

Examples that belong on line 25

$85 a month plan, two sampled bills showing 62% business data and minutes: $52.70 a month deductible
$30 a month second line used only for the business: 100% deductible
$1,020 annual plan charge at 62%: $632 on line 25
A $1,200 handset at 62% business use: $744 of basis on Form 4562, not line 25
A family plan with four lines: allocate per line first, then apply business use to your own line

What does not belong here

Deducting the whole family plan because the bill is paid from the business account.
The basic charge of the first landline into your home, which is nondeductible in full.
Picking a percentage with nothing written behind it, which is the first thing questioned.
Putting the handset purchase on line 25 with the service.

The limit that applies

Business-use percentage applies to the whole year's charges. Cell phones were removed from the listed property rules, so a contemporaneous daily log is not required, but a documented representative sample is what supports the percentage.

What to keep

Keep two sampled itemised bills with the business calls and data marked, a short memo stating the percentage you derived and how, and the twelve monthly bills. Redo the sample when your usage changes materially rather than carrying the same percentage for years.

Other expenses on line 25

Expense	Line
a dedicated second business landline	Schedule C, Line 25
a hotspot or mobile data plan	Schedule C, Line 25
a mobile phone bill	Schedule C, Line 25
a security monitoring service	Schedule C, Line 25
a shared internet connection	Schedule C, Line 25
a VoIP service	Schedule C, Line 25
electricity for a rented office or studio	Schedule C, Line 25
gas and heating for business premises	Schedule C, Line 25
internet service	Schedule C, Line 25
utilities in a part-shop part-home building	Schedule C, Line 25
water, sewer and trash for business premises	Schedule C, Line 25

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Sources

This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.

Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.

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