Question:
1) When calculating Maaser, is the minimum monthly payment that is due to the credit card company, for the credit card that I use for business purposes considered a business expense? If it is, I would first deduct this minimum monthly payment from my income, before calculating maaser, correct?
2) If I put a $500 business expense on my business credit card for the month of December instead of paying the amount in full directly using my business debit card (which is linked directly to my business bank account), should I / could I deduct the full $500 amount from my December income, before calculating the maaser for the month?
3) If I am allowed to do both of the above mentioned, then for the $500 example given above, not only would I be deducting the full amount in December from my income, but each month this charge remained unpaid on my credit card, I would also be deducting the minimum monthly payment for all future monthly payments that will be due as well. Is this ok to do?
Answer:
Hello,
- We may deduct normal business expenses from our income, because this money is not considered earned, rather part of the investment which was made in order to get the profits.The monthly charge of the business credit card, (if used for the business) is considered a business expense.
- The calculation of maser is not a monthly calculation, rather a yearly one. We take all the profits, versus the expenses, and a tenth of that is given to tzedakah. One can give more one month and less the next month. Therefore, it doesn’t matter which month that charge comes from. It is part of the year’s expenses
- If I am understanding you correctly, if the credit card is needed for the business, it is a valid business expense. The charges to it when used for the businesses needs can also be deducted, but only what is actually paid. Therefore, you can deduct the $500 charge once, and if the credit card is only taking $50 per month, you can’t deduct 500 plus 50 times ten.
Best wishes
