Can you deduct interest on a business credit card?

Yes — you can generally deduct interest on a business credit card, but only the part tied to business expenses.

Key rule: the charge must be for an ordinary and necessary business expense. So interest from office supplies, business travel, software, and similar purchases is usually deductible.

Not deductible: interest on personal purchases like groceries or vacations, even if they’re on the same card. If you mix business and personal spending, you need to split the interest and deduct only the business portion.

A few related items may also be deductible:

• Annual fee for the business card
• Late fees related to business use

How it’s reported depends on your business type:

• Sole proprietors / single-member LLCs: Schedule C
• Partnerships / multi-member LLCs: Form 1065
• Corporations: Form 1120 or 1120-S

Check the current tax rules and your CPA’s guidance before filing.