Can You Write Off Phone Repair on Taxes? Understanding Listed Property Deductions

What is Listed Property?

Computers and cell phones are considered “listed property” by the IRS. This designation applies to items that can be used for both personal and business purposes. Due to the potential for misuse of deductions, the IRS has specific rules for claiming expenses related to listed property.

Deducting Phone Repair Expenses

You can potentially write off phone repair costs on your taxes, but there are important conditions to meet:

Keep detailed records: You must maintain a log documenting the percentage of business vs. personal use for your phone.

Only deduct business use: You can only claim the portion of repair costs that correspond to your business usage percentage.

Meet the 50% threshold: To qualify for accelerated depreciation methods, your business use must exceed 50% of total usage.

Steps to Claim Phone Repair Deductions

Calculate your business use percentage
Determine the total repair cost
Multiply the repair cost by your business use percentage
Include the deductible amount on your tax return (typically Schedule C for sole proprietors)

Other Deductible Phone-Related Expenses

In addition to repair costs, you may be able to deduct:

A portion of your monthly phone bill
Accessories used primarily for business (e.g., cases, chargers)
Software or apps used for business purposes

Recordkeeping Best Practices

To support your deductions in case of an audit:

Use a separate phone for business if possible
Keep all receipts for repairs and related expenses
Use a mobile app or spreadsheet to track usage
Review and update your records regularly

Common Mistakes to Avoid

Deducting 100% of phone expenses without proper documentation
Failing to meet the 50% business use threshold for depreciation
Not considering the personal use portion of repair costs
Overlooking other deductible phone-related expenses