-savings for you:
Under entity type of proprietorship: no longer listed property; deduction based on percentage use
Under entity type of S or C Corp: non-compensatory business purpose; entire amount for both personal and business use
Under independent contractors: must be given to them by clients; otherwise, will be treated as sole proprietors The IRS will treat the value of any personal use of a cell phone provided by the employer primarily for noncompensatory business purposes as excludable from the employee’s income as a de minimis fringe benefit.
To claims this deduction: Fees for us to prepare: $300
We will prepare a company phone policy that shows
Employer needs to be able to contact employee at all times in case of work related emergencies
Employer requires that employee be available to speak with clients when away from the office
Employee needs to speak with clients outside the employee’s normal workday
Corporation will pay the employee a cash allowance or reimburse employee for personal cell phone use
What you need to maintain:
Timecard (if not using ADP or Quickbooks Time) Fair market calculation for salary of your child