Not anymore Bob. It was, but a year or so ago the rules changed…
Correct it was changed in 2013
In that case it is not a write off anymore I guess if it ever was though what would prevent you from collecting add on charge then writing it off as a double bonus shot ?
It’s not against the law. It’s against most credit card (i.e., bank) policies.
It was never against the law. It was only against bank and credit card policy. If the bank or credit card issuer discovered that you added surcharges or fees for using a credit card, they would cancel your merchant status so that you could not accept credit cards. And many merchants did have their card acceptance status canceled, which is what resulted in the class action litigation in 2005. That litigation was settled in 2013 and allowed merchants to charge fees directly for credit card transactions.
I’m surprised you of all people made that into a question. I would have thought you would have said, “The fee(s) are tax deductible.” My CPA always asks me about any business fees I pay. As he likes to say, “They add up!”
Nothing.
It’s the way the system works. Add-on charges are simply income. There is nothing on your tax return that asks for “add on charges.” You could put it under miscellaneous income, though.
Then the fee is a tax deduction. Legal business fees (as opposed to some of the illegal business fees I see this close to the Mexican border) are always a “write off.”
The system is how you get “gross income,” “net income,” and “taxable income.”
Hmmm… but if you charge extra to cover the Card company charge why would they also allow it to be treated as an expense ?
Maybe I do not think "evil white collar "enough.
They are two separate items. One is a surcharge fee (income) and one is an expense. Even if you charge a fee to cover the fee, you’re still going to be charged the fee by the credit card company.
Ask your CPA. Hopefully you have one, but if yours hasn’t been working with you to give you the most for your money, and to get you the most money from your business, I think you need a new CPA.
[quote=“rray, post:49, topic:83662”]
They are two separate items. One is a surcharge fee (income) and one is an expense. Even if you charge a fee to cover the fee, you’re still going to be charged the fee by the credit card company.
Ask your CPA. Hopefully you have one, but if yours hasn’t been working with you to give you the most for your money, and to get you the most money from your business, I think you need a new CPA./QUOTE
A good CPA will find you all those write offs and not just the basic ones cause he is “to busy”.
Perhaps I do.
Had a bounced check tonight and immediately called client as it was from Christmas eve.
She sent me a payment through PayPal right away because like most already has an account there.
More than ever convinced to stay with them.