Many computer services are available on a freemium model where some service is available for free, and then you can pay more for upgraded service Suppose that I am self-employed in the USA. Typically, if some good or service is used partly for personal and partly for business use, a business deduction can only be taken for the portion that is used for business. My question is, if the nature of the service is such that my personal usage fits into the free "tier", but I upgrade to paid to get more space/service/whatever for business purposes, can the entire cost of the paid tier be deducted as a business expense, on the theory that the entire choice to upgrade to paid service was only necessary for business use?
To give a concrete example: Dropbox gives you 2GB of storage for free. If you pay $100 you get up to 1TB. If my personal usage of Dropbox is under 2GB, but I pay the $100 to get 1TB because I need it for business usage, can I deduct the entire $100 as a business expense?
This example may seem a bit silly because even if I prorated the deduction based on the actual storage amounts, 2GB is such a tiny fraction of 1TB that the difference would likely be negligible. However, my question is whether the actual amount of paid/free service actually matters, or whether it only matters whether the free level is sufficient for personal use. For instance, suppose Dropbox offered 500GB for free, and 600GB for $100. My personal usage is under 500GB, but for business purposes I really need that extra 100GB, so I pay the $100. For purposes of a business expense deduction, does it matter that 500GB of the 600GB is for personal use, or does it only matter that all of the $100 was paid in order to get the extra 100GB for business use? The example here is for Dropbox but the same question can apply to many services (e.g., backup services, web hosting, subscriptions to online publications, whatever).