How do I categorize a credit card payment on my business taxes?

If I charge $1000 on a business credit card for my LLC, and I make a payment of $200 for a monthly payment and $150 goes toward the balance and $50 goes toward interest, how do I categorize the credit card payment?





Do I claim the $1000 that I spent and also claim each payment I make on the credit card?|||When you make the purchase you debit the appropriate expense or asset account for $1,000 and credit current liabilities. As you make payments, you debit current liabilities for the principal portion of the payment, debit interest expense for the interest portion, and credit cash for the amount of the payment.





If this is all Greek to you, consider a consultation with a CPA or EA who specializes in small business accounting and taxation to get set up on a bookkeeping system.|||I wouldt treat the $1,000 charge as an expenditure. Create a loan in the amount of $1,000. Reduce the loan balance by $150 per payment and create an "interest expense" of $50 per payment.