Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

If the division of a corporation has corporate cell phones

Customer Question
for their employees and allow...
If the division of a corporation has corporate cell phones for their employees and allow them carte blanche use of those cell phones for personal use both texting and calling - not just during work hours but 24/7 can that company still claim their cell phone bills as a business expense?
Submitted: 6 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 12 minutes by:
8/1/2011
Tax Professional: Robin D., Senior Tax Advisor 4 replied 6 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,870
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Robin D :

The use of the cell phones would be a Fringe Benefit for the employee. Employers must report taxable fringe benefits to employees on Form W-2, and taxable fringe benefits to independent contractors on Form 1099-MISC. Fringe benefits include accident and health benefits; achievement awards; adoption assistance; athletic facilities; de minimis benefits; dependent care assistance; educational assistance; employee discounts; employee stock options; group-term life insurance coverage; lodging on your business premises; meals; moving expense reimbursements; no-additional -cost services; transportation (commuting) benefits; employer provided cell phones, tuition reduction and working condition benefits. Unless the useage for personal is considered De minimis. If their usegae is so low that the business use constitutes 85% or more than you are not obligated to includ ein taxable wages.
The employees personal time use would then not be the fringe benefit use woud be the deduction for the company.

Robin D :

Didi the above answer your question? In short if the business use is 85% or more than you can claim it all.

Customer:

Yes you answered my question - I just wanted to clarify whether it could still be a business expense since I have never personally worked any place where we were ever allowed to use their cell phones for personal use at all

Robin D :

Good, you can always come back here even after you clcik ACCEPT

Robin D :

that's CLICK (sorry)

Customer:

That's fine - thank you for your help - have a great day!

Robin D :

You are welcome

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,870
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,870
15,870 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

15,870 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
As an independent contractor working overseas, I want to
As an independent contractor working overseas, I want to wire funds to the US savings account of my brother. What should I be aware of in taxes,or other expenses. … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
Can an independent contractor/ 1099 worker's wages be
Can an independent contractor/ 1099 worker's wages be garnished in Texas for federal student loan debt?… read more
abci168
abci168
Principal
27 satisfied customers
I am working as an independent contractor for a university
I am working as an independent contractor for a university and have an LLC with C taxation election. The University refused to accept the W9 listing the LLC and informed me that I must complete the W9… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
When filling a w-8 form claim of treaty benefits what
when filling a w-8 form claim of treaty benefits what tharticle for Mexico … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I need help for W-2 forms for auto loan asap. File w-2's. I
i need help for W-2 forms for auto loan asap JA: The Expert will know how to help. Please tell me more, so we can help you best. Customer: file w-2's JA: Is there anything else important you think the… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
As an independent contractor (1099) should I form an LLC? Do
As an independent contractor (1099) should I form an LLC? Do I need to? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
If I work as an independent contractor under a foreign LLC
If I work as an independent contractor under a foreign LLC partnership in California, do I need to register as a foreign LLC in CA? The gross income from CA this year would be less than 50K. CA is NOT… read more
taxmanrog
taxmanrog
Master\u0027s Degree
698 satisfied customers
If I hire a veteran as an independent contractor, would I be
If I hire a veteran as an independent contractor, would I be able to claim the work opportunity tax credit?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
15,870 satisfied customers
S-corporate 100% owner incorrectly issued herself 1099-Misc
S-corporate 100% owner incorrectly issued herself 1099-Misc for health insurance premium payments for 2016. what is the best way to correct this situation now? To report amount reported on 1099 on sch… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
2016 FORM 1099 misc box 7. the company forgot to issue one
2016 FORM 1099 misc box 7. the company forgot to issue one more 1099-misc to contractor. the original 1099 and 1096 for other contractors had been mail out to IRS. so if we have to prepare this one ad… read more
Robin D.
Robin D.
Senior Tax Advisor 4
15,870 satisfied customers
Can i hire 1099 independent contractors if I'm a single
can i hire 1099 independent contractors if I'm a single member LLC? will that be classified as wages in Schedule C net profit/loss statement? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
15,870 satisfied customers
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2
FEDERAL INCOME TAX: A SINGLE WOMAN RECEIVES A 2016 FORM W-2 FROM HER EMPLOYER WITH A TYPO IN THE SOCIAL SECURITY NUMBER. TO DATE THE EMPLOYER HAS NOT PROVIDED A "CORRECTED" FORM W-2. IS THERE AN IRS "… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
How do I pay an independent contractor, such as a massage
How do I pay an independent contractor, such as a massage therapist. … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
I'm a physician. I am currently an independent contractor
I'm a physician. I am currently an independent contractor with 1099 income of about $400,000 this year. I am changing jobs to become an employee. Expect income of $160,000 this year. I have to buy a t… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Trying Again - New York based C Corp - Fringe Benefit for 5%
Trying Again - New York based C Corp - Fringe Benefit for 5% ownersBackground:BestWeb tracks the use of all company vehicles and whether the mileage is for business or personal use. The business use m… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
285 satisfied customers
Second opinion] I have a w-2 and 1099 misc form. what do I
Second opinion] I have a w-2 and 1099 misc form. what do I do? … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
I have a w-2 and 1099 misc form. what do I do? I do not know
I do not know what to ask. In 2012 a c-ez was used … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Fringe benefits - A small business owner has 3 employees.
fringe benefits -Hello,A small business owner has 3 employees. Will a gym membership ($ 20 per month) be consider a de minimis fringe benefit for those employees? or will it have to be added to their … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
481 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x