What qualifies?
- Monthly maintenance fees on business checking/savings
- Transaction fees
- Wire transfer fees
- Merchant processing fees (Stripe, Square, PayPal)
- Credit card annual fees on business cards
- ATM fees for business transactions
- Check printing fees
- Overdraft and NSF fees
- Safe deposit box rental (if used for business documents)
Personal bank fees
Fees on personal accounts are not deductible, even if you use the account for some business transactions. This is one reason to keep a separate business bank account. Clean separation makes everything easier at tax time.
Credit card interest
Interest on business credit card balances is also deductible. If you use a personal card for both business and personal purchases, only the interest attributable to business charges is deductible. Another reason to use a dedicated business card.
IRS Reference
Bank fees are deductible under IRC Section 162 as ordinary business expenses. Report on Schedule C, Line 27a (Other expenses) or Line 10 (Commissions and fees) for merchant processing.
Bank fees are deductible under IRC Section 162 as ordinary business expenses. Report on Schedule C, Line 27a (Other expenses) or Line 10 (Commissions and fees) for merchant processing.
Catch every bank fee automatically
When you connect your business account to Hivebooks, bank fees get categorized automatically. No more missing small deductions that add up.
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