I am planning to home phone line for my home but I have home based business. Can I still deduct part of my business phone calls? I am a sole proprietor but what if I incorporate as S corporation? Can I still deduct my part of my home phones for business use?
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If you only have one phone line, you can deduct long distance calls that are for business purposes. You cannot deduct any of the expense for the local service. If you choose to add a second line for exclusive business use, that associated expenses would be fully deductible. This is applicable regardless of your business form, proprietor or corporation.