The first landline into a residence is not a deductible business expense.
Why it is not deductible
The basic local service charge for the first telephone line into your residence is not deductible, full stop, and it does not become deductible because you have a home office or run the whole business from that number. The rule is specific and it surprises people who correctly apportion their electricity and their internet. What is deductible on that first line are the identifiable business extras: long distance calls made for the business and optional services bought for the business. The clean answer is to add a second line, which is deductible in full.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for the first landline into a residence is already written down.
Start for freeWhat the first landline into a residence is confused with
- Line 25, utilities
- Business long distance charges on the household line, and a second dedicated business line, are deductible utilities on line 25; the base charge on the first line is not.
- Line 30, line 30, business use of your home
- Electricity, gas, water and internet in a home with a qualifying office are apportioned through line 30; the first phone line is carved out of that treatment and stays non-deductible.
Examples people try to deduct here
- $38 a month of basic local service on the only home line, not deductible
- $14 of business long distance on that line, deductible
- $7 a month of a business voicemail feature on that line, deductible
- $38 a month claimed because the business is run from home, not deductible
- A second $42 line added for the business, deductible in full
What does not belong here
- The base charge on the only residential line.
- A percentage of that base charge matching your home office percentage.
- The whole bill because the business number is the home number.
- Household calling features claimed as business services.
The limit that applies
The base charge for the first telephone line into a residence is never deductible. Business long distance and business-specific optional services on that line are.
What to keep
Keep the itemised bill so the deductible business long distance is separable from the non-deductible base charge. Without the itemisation there is nothing to claim on that line at all.
Other things that are not deductible
| Expense | Line |
|---|---|
| a business suit | Not deductible |
| a government fine or penalty | Not deductible |
| a parking ticket | Not deductible |
| a personal expense on the business card | Not deductible |
| a spouse's airfare on your business trip | Not deductible |
| a traffic ticket | Not deductible |
| an unpaid invoice | Not deductible |
| commuting mileage | Not deductible |
| country club dues | Not deductible |
| estimated tax payments | Not deductible |
| federal income tax | Not deductible |
| groceries for your home | Not deductible |
Related lookups
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.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for the first landline into a residence is already written down.
Start for free