Create Tax-Free Fringe Benefit Deductions for your Smartphone

Create Tax-Free Fringe Benefit Deductions for your Smartphone

I hope you can benefit from this fringe benefit opportunity related to business smartphones. 

The IRS allows businesses to provide smartphones and tablets such as iPads as a tax-free fringe benefit, simplifying tax implications and eliminating the need for detailed usage records.

Eligibility. This benefit applies to corporations, partnerships, and other entities, and it can be offered to any or select employees, partners, and independent contractors.


  • Businesses can deduct smartphone costs.
  • Recipients don’t pay taxes on this benefit.
  • Recipients don’t need to keep records of business and personal use.

Sole Proprietors and Single-Member LLCs

Individual sole proprietors and single-member LLCs taxed as sole proprietors do not qualify for the benefits above because they are not considered employees for this fringe benefit. To deduct their smartphones, they need to track business and personal use.

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Question. If you have an office outside your personal home—say, downtown—can you have a tax-deductible office inside your home for the same trade or business? Answer. Yes. Q. Who says that? A. The IRS and lawmakers! Q. Show me where they say

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