Business cards, similar to credit cards, have reward points. It is useful to know which fees and expenses from these cards are tax deductible. It is no accident that business cards offer a much better break on taxes compared to personal cards. The truth is that almost all the fees which comes with a business card use can be negated.
Maximizing tax deductions
One big benefit of deducting the credit card fees as the owner of a business is there is no rule on how big the commercial concern must be. To put in perspective, you can buy assets and supplies for your business using your personal credit card-and you can still enjoy tax deductions. The only stipulation is that these expenses are for business only.
Ideally you must not allow your credit card issuer to slap a late fee. However, these things happen when you forget to make payments. Such fees could be negated as a kind of business tax. The simplest way to tackle this mess is to call the issuer. Explain and they could waive the fee. It is much better to save money than to claim tax deductions.
The annual fees latched on to business cards are completely tax deductible. This could be an excellent method to justify obtaining that card which carries an expensive annual fee. You get to enjoy a number of benefits like rewards that come with the card. Do note that although it is possible to write the whole thing off, but the primary use of a business card is to use for business purpose and not personal use.
A number of other fees could be associated with the credit card. To give an example, the cash advance fees could be tax deductible. However, a number of financial experts recommend that you must not access cash in this manner.
Since you receive money from customers, you pay the credit card issuer every time a customer swipes his or her card to pay. Since these re business related expenses, they are completely tax deductible.
If until now you have not used tax deductions related to credit card use, then it is time you do so. It makes an excellent idea to go through card statements prior to filing taxes and consequently add all fees. Your tax liability could be considerably reduced in case you use your credit card for business use. The credit card can be either a business or a personal one.