More and more clients are starting to write personal expenses out of their business accounts. What does IRS say about the matter?
Question: If I pay personal expenses out of my business bank account, should I count the money used as part of my income, or can I write these expenses off?
Answer is: You would include the money in your business income.
You would not write off these expenses because they are not ordinary and necessary costs of carrying on your trade or business.
Personal, living, or family expenses which are not specifically provided by law are not deductible.
It is recommended that you not mix business and personal accounts as this makes it easier to keep records.
Check with a good tax preparer for extra tips.
IRS: Can I pay personal expenses out of my business account- answer is…..
Filed Under: IRS Tax Advice
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