How does one calculate credit card interest for schedule C, line 16?
My wife has a home business and uses a credit card for the business. My understanding is that because we are using the cash method of accounting we can expense the interest that we paid on the card for last year.
However, looking at the statement I'm not sure how to determine the portion of each payment that was applied to interest or principal. There is a monthly finance charge of course, but my understanding of using the cash method of accounting is that we can expense what we actually paid toward the interest. So especially if we paid more than the minimum required amount or made several payments in a month, is there a simple way to calculate the portion of each payment that went towards the interest?