Can I take deductions for interest I have paid on my credit card?
I have been working hard to pay off the interest on my credit card bills. Can I deduct this interest on my income tax returns? If I can, do I have to get information from the credit card companies showing how much interest I have paid this year?
West Palm Beach, Florida
Tax Law
Is this objectionable?
Lawyer Answers
It really depends what types of expenses you have been paying for with your credit card. If you have only used your credit card for personal expenses, such as plane tickets, clothing, or eating out at restaurants, then the interest paid would not be deductible. If you have been using the credit card for business expenses, such as to pay for a consultant's airfare or for office supplies, the related interest probably is deductible. It is very important, however, to keep all of your receipts and any other records related to these business expenses.
