Say someone applies for and gets a business credit card for any amount of money.

The purpose of this is to distinguish the money spent between "regular" use and "business" use (i.e., paid services, merchandise, payroll, etc.). If I use 'X' amount of money on a business credit, but overall sustain a net loss over the period, can I/anyone claim this on their taxes (Schedule C -- 1040).

The 1040 Profit or Loss is for calculating the net gains/losses in a business. Since business credit is primarily for business, would a net loss from a business/etc. overall mean you can claim a loss?

  • loaded question, but legitimate business expenses on a business credit card incur interest, and interest payments on business credit lines are deductible.
    – CQM
    Dec 28, 2016 at 5:28

1 Answer 1


If your business is a Sole Proprietorship and meets the criteria, then you would file form Schedule C. In this case you can deduct all eligible business expenses, regardless of how you pay for them (credit/debit/check/cash). The fact that it was paid for using a business credit card isn't relevant as long as it is a true business expense. The general rules apply: Yes - if you sustain a net loss, that will carry over to your personal tax return.

Note: even though it isn't necessary to use a business credit card for business expenses, it's still an extremely good idea to do so, for a variety of reasons.

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