Cell phone deductions for business use when cell phone account is in another name?

  • Thread starter Thread starter debjusalex
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debjusalex

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My wife and I are interested in combining cell phone plans with another couple. We are interested in transferring them over to our account. The only problem is that they use their cell phones for their business. If the account is in my name, will there be a problem with them trying to claim the tax deduction for their business?
 
From your description, I think the other couple should have no problem declaring their share of the cell phone expenses as a business expense on their income taxes as long as (i) you provide them a copy of each month's cell phone bill along with a billing statement for their portion and (ii) they write a check to you for the exact share and indicate Business Cell Phones on the bottom. Basically with proof of receipts etc, if the IRS were to audit their business expenses, well everything is legitimate unless they claimed a higher or erroneous amount, or could not produce copies of cancelled checks etc.

Hope the Above Info Helps!
 
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