Understanding the Taxability of Business Credit Card Rewards

Reported 3 days ago

Business credit card rewards are generally not considered taxable income by the IRS, as they are treated as rebates on purchases instead. However, bonuses received without a purchase, like bank account bonuses, are taxable. While you can use rewards for business expenses, payments made with rewards cannot be deducted as business expenses on your taxes, since you didn’t pay cash for them. Thus, it’s important for business owners to track their spending accurately to separate business and personal expenses.

Source: YAHOO

View details

You may also interested in these wikis

Back to all Wikis