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Tax Relief For Companies Paying For Employee Mobile Phones

by Phillip Redman  |  September 28, 2010  |  Comments Off on Tax Relief For Companies Paying For Employee Mobile Phones

I get asked a lot about taxes.  Though I am not a CPA, and I don’t play one at work, many IT managers were worried and asked me about the tax implications of personal cell phone usage on a business-paid phone (see my blog entry last year from June 18, 2009).  Leglislation to remove this requirement introduced last year was slowly working its way through Congress.  Although I heard of fewer IRS audits specifically around mobile, a law is a law, and companies needed to be concerend about the tax implications of wireless.  Well, no more.

Yesterday, President Obama removed cell phones from the IRS listed property rule with the signing of the Small Business Jobs Act.  As a result, cell phones provided by employers for business use are no longer a taxable benefit under IRS rules.  It effectively removes the onus of taxing personal usage under a business device since it has been delisted. A listed property is something you buy for both for business and personal use, like your car or your camera.  It’s not considered a business expense, so it seems.  Once again, ask your own (real) legal department and accounting, but this is good news if it apples to businesses of all sizes.

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Category: cellular  enterprise-it  mobile-phones  regulation  

Phillip Redman
Research VP
10 years at Gartner
17 years IT industry

Phillip Redman is a research vice president in Gartner Research, where he leads mobile research in the network services and infrastructure group. Mr. Redman brings almost 15 years of experience in the wireless mobile and telecommunications industry… . Read Full Bio




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