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The MDTAXES Network is an affiliation of CPAs that specialize in the tax planning and preparation for young health care professionals. Please leave your questions or comments for our CPAs, who visit the message board regularly, or review the answers, suggestions and ideas posted in response to your colleagues' questions.
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Please note: We are NOT affiliated with the Maryland Tax Department. If you're looking for information about Maryland income taxes, go to www.marylandtaxes.com.
RE: Computers and Cell Phones
Hi,
I'm a 4th year psychiatry resident and had a question about deducting the costs of cell phones and computers.
1) Regarding Cell phones:
I bought a cell phone for $100 and use service for about $50.00 a month. My cell phone is Necessary and required for my work to answer emergeny pages from my patients and employer. I plan to deduct the total cost of service for the year and the depreciated cost of the phone as unreimbursed employee expenses. Is that okay, or do I need to actually look at the cell phone bills and subtract out the percentage of calls made for personal reasons? (I bought the lowest amount of minutes that ATT GSM service would allow that would be sufficient for business, so I don't feel i need to do this).
2) Regarding Computers:
I plan to deduct this under the category of using it to manage my taxable investment expenses. I bought a new printer and monitor in 2002, and want to depreciate 50% of this cost as this is the percentage of time I use these items for financial/investment reasons. I also subscribe to Broadband internet service for about $45 a month and want to deduct 25% of this cost for the year as this is the amount of time I figure I use the internet to get investment advice.
What do you think? 
Thank you!
To be deductible, an expenditure must be both ordinary and necessary with your profession. We have included link to a listing of 16 items commonly incurred by young health care professionals on our home page.
It's up to you to determine whether an item qualifies as ordinary and necessary. Meeting with a CPA who prepares returns for many of your colleagues, and reviewing all of your professional expenses with that person makes a lot of sense. Since they see what your colleagues are deducting, they have a good sense of what falls within the guidelines of ordinary and necessary.
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Replying to:
RE: Computers and Cell Phones
Hi,
I'm a 4th year psychiatry resident and had a question about deducting the costs of cell phones and computers.
1) Regarding Cell phones:
I bought a cell phone for $100 and use service for about $50.00 a month. My cell phone is Necessary and required for my work to answer emergeny pages from my patients and employer. I plan to deduct the total cost of service for the year and the depreciated cost of the phone as unreimbursed employee expenses. Is that okay, or do I need to actually look at the cell phone bills and subtract out the percentage of calls made for personal reasons? (I bought the lowest amount of minutes that ATT GSM service would allow that would be sufficient for business, so I don't feel i need to do this).
2) Regarding Computers:
I plan to deduct this under the category of using it to manage my taxable investment expenses. I bought a new printer and monitor in 2002, and want to depreciate 50% of this cost as this is the percentage of time I use these items for financial/investment reasons. I also subscribe to Broadband internet service for about $45 a month and want to deduct 25% of this cost for the year as this is the amount of time I figure I use the internet to get investment advice.
What do you think?
Thank you!
Zip Code: cpa@mdtaxes.com