December 08, 2016
Devil's in the data when it comes to writing off your cellphone bill as an employment expense
If you’re hoping for a shiny, new Apple iPhone 7 this holiday season, you’re not alone. But if you’re planning to write off your cellphone plan as a business expense, you might want to read this.
If you’re hoping for a shiny, new Apple iPhone 7 this holiday season, you’re not alone. U.S. investment bank Piper Jaffray released the results of a survey done last month by its retail team which found that the iPhone was the number one requested gift this year. But even if you get the coveted phone as a present, you’re still on the hook for the cost of the monthly voice and data plan, which can be pricey. But what if you could write off the monthly fee as an employment expense? Or, even better, what if your employer reimburses you for part (or all) of the cost of the monthly plan?
Cellphone as an employment expense
This past week, the Canada Revenue Agency released a technical interpretation responding to a taxpayer’s inquiry as to whether the costs of a basic cellular service plan is deductible from an employee’s employment income under the Income Tax Act where an employer requires the employee to use the cell phone to perform employment duties.