What documentation do you need, in order to deduct the business use of
- cell phones and similar telecommunications equipment?
- passenger automobiles and trucks?
- home computers and peripherals?
- cameras?
- audio-visual recorders and players?
- other property of a type generally used for entertainment, recreation or amusement?

The above are examples of "Listed Property," which means that the IRS finds them susceptible to non-deductible personal use. The business use of Listed Property is subject to stringent documentation requirements in order to be deductible. The personal use is not deductible.

The required documentation is 1) the amount of the expense, 2) the time and place of the use of the listed property, and 3) the business purposes of the use. In addition, the total non-business use must be identifiable, even if each personal use is not documented.

For cell phones, itemized call lists from the service provider, while not conclusive, are the beginning of the required documentation. These need to be expanded with notations that document the purpose of each business call.

Most of us are familiar with logging requirements for passenger autos and trucks and the mileage books that help document business use. A similar log for the business use of a camera or a/v equipment will meet the strict requirements.

Obviously, this process is burdensome. Nevertheless, Listed Property has been singled out by the IRS as needing special documentation to substantiate and defend a tax deduction for business use.

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