Optimize Your Credit Card Use for Tax Deductions
For single-member LLCs or sole proprietors filing a Schedule C, the date you charge a business expense on your credit card—whether business or personal—is the date you can claim the deduction. Therefore, Schedule C taxpayers may find it beneficial to use credit cards for last-minute office supplies and other business needs.
If your business operates as a corporation and has a corporate credit card, the same rule applies: the expense is deductible on the date of the charge. However, if you operate as a corporation but use a personal credit card for business expenses, the corporation must reimburse you for it to claim the deduction. For these expenses to qualify, submit your expense report and ensure the corporation reimburses you by December 31.
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