Are personal credit card fees deductible?

[iheartwawrinka]

I use my personal credit card to pay for some of my business expenses, I was wondering if I can figure out the pro-rated the percentage of those business expenses to my annual credit card fee and deduct that cost? 

Thanks! 

[NCperson]

might be worth just punting on the credit card fee and obtaining a separate business card going forward.

if you are a W-2 employee, then unreimbursed business expenses are not deductible in any event

[Opus 17]

Yes, you can use a personal credit card to pay business expenses and deduct the interest as a business expense.  But, you must be able to diligently and exactly trace the money from one place to another, so you can prove exactly how much of the interest is a business expense. The more you muddy the waters by mixing personal and business purchases, the more likely that you will lose the deduction if audited.  It would be strongly recommended that you use one credit card only for business and never for personal expenses, even if the card is in your name, not the business.  (And in fact, for a schedule C business, you and the business are the same thing anyway.  Keeping separate credit cards and bank accounts is just good practice.)

[iheartwawrinka]

Thank you for the reply this was very helpful. But I'm referring to credit card fees not interest (the fee I have to pay annually regardless). Or are we talking about the same thing? 

Thank you again! 

[NCperson]

I understand you are asking about the annual fee and not the interest.  Two of us have now responded that it would be best to have two separate cards - one for business and one for personal as it is a goo business practice not to comingle the two, esp. if the business expenses are a separate company.

we are both stating it's a 'slippery slope' to have a well documented approach on how you would split that annual fee.  Dollar value of all transactions for the year? Number of transactions for the year? etc.  Might be best to not deduct it in 2018 and get yourself a separate card for 2019.

again, if you are employed by someone else, these are unreimbursed business expenses and not deductible in any event