Cell Phones are Not Listed Property, Part 2

I wanted to follow-up on previous blog post where I wrote about cell phones no longer being “listed property.”  Listed property is property covered under Section 274 of the Internal Revenue Code and includes “entertainment” property such as computers and cameras.  Vehicles are also considered to be listed property.  Section 274 requires strict documentation of the business vs. non-business usage of listed property.

Legislation in 2010 removed cell phones from the “listed property” category.  As I talked about in my original blog post, this is big news for employees who are provided cell phones by their employers.  The employee will no longer have to track business vs. non-business usage, and the non-business portion will no longer be included in the employee’s income.  But what does it mean for people who are self-employed?

The answer is, it really doesn’t change anything.  The self-employed will still have to track business vs. non-business usage, and will still only be able to deduct the business portion of cell phone expenses.