I operate a sole proprietorship. Can I deduct the interest I pay on my business credit card? Where would that amount go on Schedule C? This is for an office supply company credit card.
2006-12-27 15:54:06 · 5 answers · asked by onebrightblue 1 in Business & Finance ➔ Taxes ➔ United States
Yes you can deduct interest on your business's credit card used only for business purposes.
There is a line for "other interest". It was 16b last year.
2006-12-27 16:01:33 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
you have it wisely -- pay off the credit enjoying cards in complete, each month. *** once you have a consistent stability on your credit enjoying cards, the financial company rates you on a regular basis activity on the popular stability -- which is composed of your husband's commute costs. in case you paid off the credit enjoying cards, you will save approximately 40 5 days activity on all of his reimbursed costs ... even at 10%, it is 200K * 10% * 40 5 / 365 or approximately 2,465.75 a 300 and sixty 5 days. this would be undeductible funds lost to the financial company. making an investment it consisting of your husband's "investment guy" would in basic terms make the same return -- even regardless of the indisputable fact that that's taxable earnings, so the internet to you is inevitably much less through the quantity of the marginal tax fee paid. as nicely, the credit card activity is for specific and the investment guy's skill to offer earnings isn't specific yet varies. My rule of thumb for specific activity cost as against uncertain investment earnings is two to a minimum of one -- I make investments in basic terms whilst my expected return [pre-tax] is two times my specific activity fee. This makes up for the situations I lose on the deal with the aid of uncertainty on the making an investment end. *** to no longer hardship relating to the financial company -- they gets a commission through the retailers [such because of the fact the airlines] for those 40 5 days' activity.
2016-12-15 09:30:17 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Here here on the previous posters.
You can either put it under Line 16B - Other Interest
or
you can put it in under Line 27 Other Deductions and call it Finance Charges on Part V Other Expenses.
2006-12-27 16:51:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes if the amount you pay is for business related expenses.
2006-12-28 08:05:52 · answer #4 · answered by woodluvto 2 · 0⤊ 0⤋
yes
2006-12-27 16:07:10 · answer #5 · answered by treky1999 2 · 1⤊ 0⤋