Search

2018 Last-Minute Year-End General Business Deductions 4


4. Use Your Credit Cards


If you are a single-member LLC or sole proprietor filing Schedule C for your business, the day you charge a purchase to your business or personal credit card is the day you deduct the expense. Therefore, as a Schedule C taxpayer, consider using your credit cards for last-minute purchases of office supplies and other business necessities.


If you operate your business as a corporation, and if the corporation has a credit card in the corporate name, the same rule applies: the date of charge is the date of deduction for the corporation.


But if you operate your business as a corporation and you are the personal owner of the credit card, the corporation must reimburse you if you want the corporation to realize the tax deduction, and that happens on the date of reimbursement. Thus, submit your expense report and have your corporation make its reimbursements to you before midnight on December 31.




7 views0 comments

Recent Posts

See All

Documents & Deadlines

Appointments and Tax Document Deadlines It's that time again! Thank you for your business and loyalty throughout the years. We look forward to serving your tax preparation needs in 2021. To keep yo

February 2021 Newsletter

Who Qualifies for First-Draw PPP Money Today? Two things to know about the Paycheck Protection Program (PPP) first draw enacted on December 27, 2020: The first draw is for those who missed getting in

10 Proven Tax Reduction Strategies for the Self-Employed

You can feel overwhelmed when you search our archive library for strategies that apply to the self-employed. For example, a search today will yield more than 263 strategy articles with the words “self