My company is set up as an S-Corp- and I am the sole shareholder. Business income has improved this year, and I'm looking at my end of year personal tax liability that will appear on the Schedule K. I'm considering upgrading my current work/cell phone to an IPhone XR or XS before the end of 2018.
I had switched from Verizon Wireless to Cricket Wireless earlier this year to reduce costs, and in order to get the phone I want, I'd need to purchase the phone (plus the $25 upgrade fee) from them directly. That being said, here are my questions:
1- Is this an allowable expense? If so, 100% or only a percentage based on my business/ personal use ratio?
2- Can the phone be purchased outright, or do I have to set up a monthly payment plan?
3- Upon completion of the purchase, would the expense be recorded as a "Fixed Asset" that will depreciate over time, or do I enter it under the "telephone expense" category? When I had switched to Verizon Wireless a few years back, I got an IPhone SE from them and spread the payments out over 24 months- and the expense for the phone and the monthly service was entered as "telephone expense".
If this is even a possibility, I'd like to be sure I'm staying consistent and that I'm following the rules properly.
Any professional advice would be greatly appreciated.