Romilly Lockyer/Getty Images
Don't deduct a landline telephone, but …
If you still have a landline telephone at home, you can't deduct the cost -- even if you primarily use that phone for business. The IRS says the first hard-wired phone line in your home is considered a nondeductible personal expense.
But you can deduct as a business expense the cost of business-related long-distance charges on that phone.
And if you install a second landline specifically for business, its full cost is deductible.
If you use a cellphone, determine how much often you use it for business. For example, if you spend half of your time conducting business on your phone, you may be able to deduct half of your phone expenses.
But if your wireless provider doesn't send an itemized bill, it may not pass muster with the IRS. As with the landline, a second cellphone used exclusively for business would.
Want to see what other business expenses you can deduct? Check out Bankrate's Self-employed tax calculator.