A dedicated second business landline belongs on Line 25, utilities.
Why line 25
A second line brought into a residence and used for the business is fully deductible, and it goes on line 25 with the other utilities. This is a real planning point rather than a technicality, because the first line into a home is never deductible while the second one is. The deduction covers the monthly charge, the installation of that line and the business long distance on it. The line has to be genuinely for the business: a teenager's phone line does not qualify because the business occasionally rings it.
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 dedicated second business landline lands on Line 25 without you sorting it.
Start for freeWhat a dedicated second business landline is confused with
- not deductible, not deductible
- The first telephone line into your residence is non-deductible by statute even with a qualifying home office; only the second and later lines can be deducted.
- Line 30, line 30, business use of your home
- A dedicated business line is deducted in full on line 25 rather than apportioned through the home office calculation, because none of it serves the household.
- Line 13, depreciation and section 179 expense deduction
- The line and its service are line 25; a desk phone system or handsets you bought are equipment on line 13.
Examples that belong on line 25
- $42 a month for a second landline that only the business uses
- $130 installation charge for that second line
- $28 a month for a fax line kept for a healthcare client
- $36 a month for a dedicated line for the card terminal at a shop
- $9 a month of business long distance billed on the business line
What does not belong here
- The first residential line, even with a qualifying home office.
- A second line used mostly by the household.
- Optional features on the household line, such as caller ID, claimed as business.
- Phone hardware, which is equipment.
The limit that applies
The first telephone line into a residence is not deductible. A second dedicated business line is, in full.
What to keep
Keep the carrier bill showing both lines separately, so the business line is identifiable as the second line and not the household one. Note which number is published for the business.
Other expenses on line 25
| Expense | Line |
|---|---|
| a hotspot or mobile data plan | Schedule C, Line 25 |
| a mixed-use phone bill | 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 |
Related lookups
- Is a car payment deductible on Schedule C?
- Can I deduct homeowners insurance for an office?
- Where does capex go on Schedule C?
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.
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 dedicated second business landline lands on Line 25 without you sorting it.
Start for free