I'm purchasing equipment for my business. I would like to consider purchasing the equipment with a credit card that offers a low APR. The leasing agent told me that if I purchase the equipment with a credit card, it will not be a write-off. Is that true? Can I write off equipment if purchased with a credit card?

ANSWER

The BIDaWIZ Team's Answer:

The leasing agent is absolutely incorrect. You can certainly claim a Section 179 deduction even if you use borrowed funds. As long as the property meets the Section 179 election criteria, this is an eligible deduction. Having said that, borrowing from a credit card may not make that much financial sense. You really need to have a very low APR for this to make sense. Is it possible for you to obtain a small business loan at a more favorable rate?