Q. We have used a credit card to pay for equipment rentals and expensed the total in as a business expense on our books and on our tax return. Is there any way to deduct the credit card payments made on those loans?

A: The payments on the credit card balance, which you correctly identified as payments on a loan, are not deductible. Payments on a loan as well as the proceeds from a loan are not taxable. It sounds like you correctly expensed the equipment when purchased on your books and on your tax return. The interest expense incurred on the balance of the loan as well as the card fees may be deductible as a business expense if it is indeed a business activity card.

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