Question regarding Southwest Visa Business card....

[bcbmommy]

Okay, I applied for the Business and Premier card, and so far have just received the Business. The premier said they needed more time to look at my application, so I don't know if I'm getting that one or not. Anyway, my question is this.... I need to pay my daughter's 2nd semester tuition by today to get the 1% early pay discount. I was wanting to pay for it with my Premier card, but since I've only received our Business card, I'm considering using that. Of course, I'll write a check to cover it immediately from our personal account (not our business account). Could this have any ill effects when it comes time to do our taxes for our business? I'm thinking not, because we'll be paying it off with our personal account. I just want to make sure if we ever get audited, that it doesn't look like we paid for our daughter's tuition with our business.

 

[Shelly F - Ohio]

Since the transaction was on your business card the transaction will show you used the business card to pay her tuition. In an audit there is no way around it because you did in deed use your business card to fund your daughter tuition even though you paid the card from you personal checking acct.

 

[supersnoop]

Do you own the business? Why hasn't your business established a scholarship fund?

 

[bcbmommy]

Do you own the business? Why hasn't your business established a scholarship fund?

Yes, we own the business. Hmmm...have never thought of that. I think that would probably be suspicious, though, if the daughter of the owners was the recipient. I wish.

 

[bcbmommy]

Well, I think we're going to go ahead and do it, since we'll have a paper trail to show that we paid it with our personal account. Thanks!

 

[teller80]

Make sure her college doesn't charge a fee to pay tuition by credit card.

 

[bcbmommy]

Make sure her college doesn't charge a fee to pay tuition by credit card.

Surprisingly, they don't. I asked at the beginning of the school year, because I was thinking the same way. It's a win/win for me. I get a discount for paying early, and get the rewards points, too!

 

[wekhogan]

Since it's not being deducted on your business return, you'll be fine. While it's good organizationally to keep expenses separate, it's whether you deduct it off your business income that matters, not the card used to charge it.

 

[bcbmommy]

Since it's not being deducted on your business return, you'll be fine. While it's good organizationally to keep expenses separate, it's whether you deduct it off your business income that matters, not the card used to charge it.

Thank you! This makes me feel better.