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Yes, credit card interest may be deductible ...

By
Real Estate Agent with Seven Gables Real Estate BRE 01727426

As a rule, credit card interest is not deductible. But many business owners and investors who are struggling with cash flow, use their credit cards and pay interest to tide them over tough financial times. Hopefully, this is a last resort!

Nevertheless, IF you paid credit card interest (or even interest on a different type of loan) on purchases you made for otherwise tax deductible expenses related to your business or investment property, it may be deductible.

As always, this is not tax or legal advice. If you think this could apply to you, be sure to check with your tax advisor and see if you qualify for this deduction.

Have a great day!

Nancy Moeller, REALTOR®, CPA

www.TheOCExperts.com

714 276-7006

Comments (2)

Chris Pollinger
Berman & Pollinger, LLC. - San Diego, CA
Consulting for Luxury Teams and Brokerages
Thanks for the input Nancy - I would imagine that this deduction will be used by many after 2007 is over...
Oct 10, 2007 03:06 AM
Brian Block
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate
Nancy, I figured this one out last year and used it for my taxes.  Thanks for the reminder.  It works best and is easiest to figure out if you keep one card exclusively for business purchases.
Oct 12, 2007 01:18 AM