There are more than 364 million open credit card accounts in the United States. Most people use one daily. This is typically true of businesses as well. In fact, most business owners have a credit card they use for any and all purchases. However, not everyone is aware of the many business credit card deductions they may be missing out on.
5 Business Credit Card Deductions
As many of us are receiving our W2s and other tax paperwork in the mail, you may be searching for additional deductions you can make before you file. If you are a business owner or have a business credit card, be sure you make a note of these.
- Credit card interest charges. Ideally, you wouldn’t have any interest on purchases for your business. Every once in a while you may have to buy a large piece of equipment or something more expensive that you aren’t able to pay off in one swipe. If you are charged any interest throughout the year, you can deduct it from your taxes.
- Any swipe fees. At any point during the year, if you paid a service fee to swipe your business credit card, deduct the fee.
- Late fees. The same can be said of late fees. You can write off any late fees you paid last year.
- Annual fees. Some business credit cards have an annual fee. If your card does, you can deduct the fee from your taxes.
- Miscellaneous credit card fees. All in all, you’ll be able to deduct any fees or charges you paid last year using your business credit card. Be sure you note any fees you incur, so you have this information on file.
Things to Keep in Mind When You File
Keep in mind, that these deductions are only available for business credit card transactions. You cannot write off fees and interest charges for any personal items. If you use your business card for anything personal, you’ll need to go through your statement and calculate the amount of interest paid on business dealings. However, it is best to use the card solely for business purchases to make tax season a little easier.
Lastly, if you have any questions about business credit card deductions or other deductions available to you, it never hurts to consult a tax professional. At this time of year, many firms are running specials and can help answer any questions you may have.
What is one of your favorite business or personal tax deductions?