2011 Virginia Legislators' Tax Guide: Telephone ExpensesCan I deduct the cost of my home telephone since I use it for making and receiving calls from constituents and for other state business? The basic cost of the telephone is an expense you would incur regardless of whether you were a member of the General Assembly. If you are charged in addition to the basic rate for calls, the additional charges are a deductible expense, as long as they relate to state business and to your position as a member of the General Assembly. The basic rate, however, would not be a deductible expense. If you have a separate telephone installed exclusively for the purpose of your legislative business, then the entire cost of this telephone could be deducted as a business expense. The cost of long distance phone calls and facsimiles that relate to state business is a deductible expense. Use of an answering service is also a deductible expense, if it is related to your position as a member of the General Assembly. An answering machine again is an expense required by your office and therefore would be a deductible business expense. Cellular Telephones Cellular telephones and other similar telecommunications equipment are no longer considered listed property. Beginning in 2010, an employee may be able to deduct job-related expenses related to using a cell phone even though the use was not for the convenience of his or her employer and required as a condition of employment. Although cellular telephones are no longer subject to the increased recordkeeping requirements of listed property, adequate records to establish the business use percentage of cellular phones must still be maintained. The business use percentage is used to determine the correct amount of depreciation that an employee may deduct. In addition, the business use of the cost of cellular telephone minutes can be deducted as an unreimbursed employee business expense. |