A Comprehensive Guide on How to Claim Your Cell Phone for Business Use

Why It Matters

If you use your personal cell phone for work — answering client calls, emailing customers, or managing business apps — you can claim part of that expense as a business deduction. But the key is proving your business use and claiming the right percentage.

What You Can Claim

The CRA allows you to deduct the portion of your phone bill that directly relates to business activities. This can include:

• Monthly service fees (voice, text, and data plans)

• Long-distance charges for business calls

• Roaming fees if used for business travel

• Phone purchase cost (you may claim depreciation if the phone is capital property)

💡 Example: If your total phone bill is $100/month and 60% of your usage is business-related, you can claim $60 as a deductible expense.

How to Calculate Business Use

1. Track your usage for at least a few typical months — note how many calls, texts, or data usage are for business.

2. Calculate the percentage of total usage that’s business-related.

3. Apply that percentage to your total annual phone costs.

Example: 60% business use × $1,200 annual cost = $720 business expense claim.

Equipment (Phone Purchase)

If you buy a phone specifically for business, you can claim Capital Cost Allowance (CCA) instead of expensing it fully in one year.

• Phones usually fall under Class 8 assets, with a 20% depreciation rate.

• Only claim the business-use portion of the phone’s cost.

Keeping Records

The CRA may ask for proof of your claim. Keep:

• Copies of monthly bills showing total charges

• Notes or logs showing business-related usage

• Receipts for phone purchases and accessories

Keeping clear records ensures your claim holds up if reviewed.

Common Mistakes to Avoid

🚫 Claiming 100% of your bill when part of it is personal use
🚫 Forgetting to keep records or proof of business calls
🚫 Ignoring depreciation rules when buying a new device

The Bottom Line

You can absolutely claim your cell phone as a business expense — just make sure your claim reflects your actual business use. Track it, document it, and apply a reasonable percentage.

If you’re unsure how much to claim or how to handle shared family plans, TiKi Tax can help you calculate your deduction properly and keep you CRA-compliant.