Are you talking about the payments you make on a credit card to pay off some or all of the balance? For example, you have $1,000 charged on the card, and you are sending $250 to pay it down?
If so, then, no, this is not what you deduct.
Instead, you should deduct the items that you bought with the credit card: stationary, business cards, fuel, telephone bill, etc. And you deduct them in the year in which you "bought" them, even if you paid for the items over the span of a couple of years.
Any interest incurred on the credit card for business purchases would be deductible - this is why it is really a good idea to have a separate checking account and credit card for your business so that there is no confusion over what interest is personal and what is business.
Are you talking about the payments you make on a credit card to pay off some or all of the balance? For example, you have $1,000 charged on the card, and you are sending $250 to pay it down?
If so, then, no, this is not what you deduct.
Instead, you should deduct the items that you bought with the credit card: stationary, business cards, fuel, telephone bill, etc. And you deduct them in the year in which you "bought" them, even if you paid for the items over the span of a couple of years.
Any interest incurred on the credit card for business purchases would be deductible - this is why it is really a good idea to have a separate checking account and credit card for your business so that there is no confusion over what interest is personal and what is business.
That's what I was thinking, to report credit card purchases made within that year even if I was still making payments into the following year. Thank you for your help.
Question: business materials are bought on credit card. credit card purchase gets tagged as business expense, "materials and expenses." What do the payments toward said credit card get tagged as? Personal ? Or should it be marked "exclude transaction" I'm using quickbooks self employed and totally appreciate any and all help . Thank you