Can You Deduct Business Credit Card Interest and Fees?

BEN LUTHI | January 11, 2019

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When tax time rolls around, business owners have a lot of options to reduce their taxable income. If you use business credit cards for operating expenses or to finance large purchases, you may be able to deduct some of your costs. As you prepare to file your taxes, here’s what you need to know about business credit card tax deductions. The IRS allows business owners to deduct any ordinary and necessary expenses. This means that the expenses are common to your type of business and are helpful and appropriate in running it. When it comes to credit cards, that includes eligible interest and fee expenses paid or accrued during the year, depending on how you report it. It’s generally best to avoid paying interest on a credit card. But if you paid or accrued interest during the tax year, you may be able to deduct it on your tax return.

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