Can I deduct business expenses paid with store credit cards? Tax implications?

Yes, you can absolutely deduct those business expenses now, even though you haven't fully paid off the store credit cards yet. The key factor here is that you're using the accrual method of accounting, which means you record expenses when they're incurred, not when they're paid. When you purchased those office supplies and equipment, the transaction was completed from a tax perspective - you took possession of the items and incurred the obligation to pay for them. The fact that you're financing them through store credit cards doesn't change the timing of the deduction. Just make sure you keep good records of what you purchased, when, and how these items are used for your business. If these are 100% business use items, you can deduct the full amount (minus any personal use percentage if applicable). For the computer equipment over $2,500, you might need to consider depreciation rather than an immediate expense deduction, though Section 179 might allow you to deduct it all in the current year.

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Something else to consider that no one has mentioned yet: If you're buying equipment that costs over $2,500 per item, you might need to capitalize and depreciate it rather than taking an immediate deduction - unless you file a de minimis safe harbor election or use Section 179. The computer from Best Buy might fall into this category depending on the specific cost. Just something to be aware of when doing your taxes. I learned this the hard way when I tried to deduct a $3,000 professional camera in one year for my business.

Has anyone used QuickBooks for tracking these mixed payment situations? I'm trying to figure out how to properly record business expenses paid with store credit cards so my tax reporting is correct at the end of the year.

Great question! As someone who's dealt with similar situations, I can confirm that Amara's advice is spot-on. Since you're using accrual accounting, you can deduct those expenses in the year you incurred them, regardless of when you pay off the credit cards. One additional tip: make sure to keep detailed records of what percentage of each store card is used for business vs personal expenses if you ever use them for non-business purchases. The IRS loves clear documentation, especially for credit card transactions. Also, don't forget that if you're claiming the computer as a business expense, you might want to look into bonus depreciation or Section 179 expensing for that $2,200 Best Buy purchase. Depending on your business income, you might be able to deduct the full amount this year rather than depreciating it over several years. The 20% discounts you got from signing up for the store cards are just reductions in your business expenses - they don't create any additional tax complications. Your deductible amount is simply the actual price you paid after the discount.