Deducting Internet Service Costs

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    Deducting Internet Service Costs

    Hi there - I work from home approximately 15-20 hours a week, the majority of which is internet research & fact checking. I'm under the impression that because of this, at least some portion of the amount I pay Comcast each month for internet service is/should be deductible. Is that the case? And if so, what is the best way to calculate what percentage, as obviously, the internet isn't used solely for work in our house, but I'd say the majority of time spent online is in a work capacity (and my spouse works from home one day a week as well, using the internet for work). Any advice would be greatly appreciated. Thanks!
     
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    Re: Deducting Internet Service Costs

    In Response to Deducting Internet Service Costs:
    Hi there - I work from home approximately 15-20 hours a week, the majority of which is internet research & fact checking. I'm under the impression that because of this, at least some portion of the amount I pay Comcast each month for internet service is/should be deductible. Is that the case? And if so, what is the best way to calculate what percentage, as obviously, the internet isn't used solely for work in our house, but I'd say the majority of time spent online is in a work capacity (and my spouse works from home one day a week as well, using the internet for work). Any advice would be greatly appreciated. Thanks!
    Posted by notlenny


    Dear notlenny:

    While it sounds like you have a good arguement for claiming a deduction, the problem comes down to the portion of the cost which you may be allowed to claim.  The IRS is a "numbers based" organizetion and abhors "estimates".  Should you be audited, they would want to see some objective measure backing the claimed deduction for the alloction to busness and they ususally favor time in a case like this.  Your problem would seem to be how to measure/track the time used for business vs. personal and documenting it.  If your  documentation is solid, there should be no problem wth the deduction claime.  If your documentation is weak,and you get an auditor who "hangs tough", you would get no deduction; if you get one with a different perspective, you could be allowed whatever they deem to be a reasonable allowance.

    Hope this helps in preparing your returns!

    Mark H. Misselbeck, C.P.A., M.S.T., Tax Principal
    Katz, Nannis + Solomon, P.C.
     
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    Re: Deducting Internet Service Costs

    Thanks so much - very helpful and appreciate the quick reply, great that you guys are providing this service!
     
    In Response to Re: Deducting Internet Service Costs:
    In Response to Deducting Internet Service Costs : Dear notlenny: While it sounds like you have a good arguement for claiming a deduction, the problem comes down to the portion of the cost which you may be allowed to claim.  The IRS is a "numbers based" organizetion and abhors "estimates".  Should you be audited, they would want to see some objective measure backing the claimed deduction for the alloction to busness and they ususally favor time in a case like this.  Your problem would seem to be how to measure/track the time used for business vs. personal and documenting it.  If your  documentation is solid, there should be no problem wth the deduction claime.  If your documentation is weak,and you get an auditor who "hangs tough", you would get no deduction; if you get one with a different perspective, you could be allowed whatever they deem to be a reasonable allowance. Hope this helps in preparing your returns! Mark H. Misselbeck, C.P.A., M.S.T., Tax Principal Katz, Nannis + Solomon, P.C.
    Posted by MASocietyofCPAs

     
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