Hi,
I have 4 questions. Please keep numbering in your answers. Much appreciated!
1. We have a small business. I earn with W2 and my spouse earns with form-1099 for her small business PLLC sole proprietorship. It appears per IRS that an annual fee for a business credit card such as Chase Ink is deductible. Please confirm whether my interpretation is accurate.
2. I pay extra Fed + State Taxes from my W2 to cover the business earnings but we still fall short every year; so we pay 1040-ES each year. Say $10k/yr. I noticed that for 1.87% fee, IRS accepts Credit Cards to pay the fee. While it is not a small percentage, if we pay with a credit card, for say $10k we pay in 1040-ES, we will incur $187 annually just in fees. I want to know will that be a deductible business expense for the coming year? Which bucket under Schedule C will it fall under?
3. After preparing 2019 taxes with TT, I find that we owe IRS ~$500. If I pay that with a credit card, it is a payment against 1040 (not against 1040-ES); will that be also tax-deductible against the business expenses the next year?
4. Is there a less expensive option to pay IRS with a credit card than 1.87%?
Thanks!
