What if the cost of my cell phone or PDA is not included in the monthly service plan costs?
In most cases the cost of the device will be included in the service plan costs. However, if this is not the case, the cost of the handset will be prorated over the life your service contract or treated as a one-time cost if the contract is month-to-month. In either event, you will receive a cash allowance reimbursing you for the taxes on the imputed income related to the cost of the device. If the device was purchased prior to the implementation of the new policy on June 1, 2009, it will be excluded from the imputed income and cash allowance you receive.
In most cases the cost of the device will be included in the service plan costs. However, if this is not the case, the cost of the device will be prorated over the life your service contract or treated as a one-time cost if the contract is month-to-month. In either event, you will receive a cash allowance reimbursing you for the taxes on the imputed income related to the cost of the device. If the device was purchased prior to the implementation of the new policy on June 1, 2009, it will be excluded from the imputed income and cash allowance you receive.
