Tax deduction question

2 Replies

My husband and I recently closed on our first investment property which we plan to fix up and then rent out. My question is: if we redeem our personal credit card points for Lowe’s / home dept gift cards to go towards supplies/materials/cabinets etc, can we deduct that as an expense even though we used a gift card vs a credit card or cash? Any accountants out there or anyone who has done this who can share some insight? Thanks very much, Monica

@Monica Evans You can't claim personal gift cards as business expenses, under no circumstances. Buying/redeeming gift cards for ones self and claiming it is abusing it and you are taking a risk by doing so if you get audited and fail to produce proof.

@Monica Evans

I would use the points to get a gift card that you would eventually use for personal items.

I would pay for business items with cash so you can claim the deduction.

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