With the credit line I embrace the 1099 dogmatic Interest paid from the bank. I embrace zero from the Credit Card association however both contingency be paid. My accountant does not hold A Business Credit Card Interest is Tax Deductible. I hold which both have been viable forms of credit prolongation thus in accord with as well as authorised forms of commercial operation to financial use or goods. Can any one yield one more report to reduced tenure financial seductiveness expenses. Thank You. Business Minded.
When I pronounced the line of credit it is the commercial operation line. Not the home line of credit. The Business Credit label is essentially used particularly for business. It is used to squeeze apparatus or reduced tenure purchases of 1000 to 10,000 for 2 to 6 months since my suppliers usually solely credit cards. I could compensate off with line of credit any month however, remuneration conditions have been not as stretchable as Credit Card.
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Credit and finance costs are always valid business expenses as long as they are reasonable and necessary. If your accountant says that they are not, find a competent accountant; yours is not.
This assumes of course that you are talking about business expenses. A “business” card used for personal expenditures would not generate deductible interest of course, whether you owned a business or not.
You have advice from a (presumably) qualified account and you choose to believe Yahoo posters?
I assume you are refering to a home equity line of credit? HELOC interest is deductible if used to upgrade the home. Your credit card interest is probably not, even though it is a business card, I don’t know. i do know personal interest is not, and as an extension, I am guessing it is not for businesses as well. i suggest finding a new accountant, if was worth his salt, he should know these things
Heck, if you use your personal credit card for a business purchase, the interest would be deductible–the hassle would be sourcing the interest expense to just the business item. (Conversely, if you use the business card for personal expenses, you can’t deduct the interest allocable to the personal expense.)
I suspect your preparer isn’t used to people actually having a business only credit card and doesn’t want to do the math to allocate the interest.
credit card interest is not deductible on personal accounts
if you have a credit card that you use only for business(never anything personal on there) the interest can be charged as an expense of the business(Sch C)
if you have a line of credit if it is based on your home, and the use of it is for the home, that interest would be deductible as additional home mortgage
however, if none of it for the home, it is not deductible