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May 22, 2021
Question

Can you claim interest paid on a business credit card on your personal income tax ( new business, not making any money)?

  • May 22, 2021
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May 26, 2021

Thank you for choosing TurboTax. Yes you can claim interest paid out from business credit card while filling in your expenses on T2125 Self-Employment form. When you operate a business, you often have to borrow money to buy equipment, support operations or finance expansion. You may take up a line of credit, get a loan or put expenses on your credit cards. You can deduct the interest charged on these funds from the business income, and if the business takes a loss, from any other income you may have. All interest your business pays to finance its operations is usually deductible. 

Check out which type of interests are deductible and tax deductions for self-employed.