Valued Contributor
Posts: 1,265
Registered: ‎09-14-2012
Re: What can I expense? Credit card balance, or amount I've paid towards credit card

squishyn00dles wrote:

sccredit wrote:

That actually is


llecs wrote:

Right. If you haven't paid for it, you can't deduct it using the cash-basis.



 not 100% correct.  The IRS assumes that once an item is paid for on a credit card it is, at that point, paid for. 


Wait... really??  Now I'm confused.

 

It doesn't seem likely to me that the IRS would allow expenses to be written off prior to being actually paid (as in, expensing a balance left on a credit card).


http://www.ehow.com/info_7797102_cashbasis-time-credit-card-charge.html

 

I think this simplifies it. 

Never take credit personally

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