I wanted to know if this is possible. 40-50% of my place is used for business. Since all of my income flows thru my business bank account, it (to me) makes sense to pay my rent and utilities which can be deducted out of my biz account. I take a draw for any personal expenses (movie rentals, personal groceries, health/hygiene, etc). I'm the sole owner so all passes thru to me anyway. Am I on the right track here?
2006-08-16 13:51:12 · 2 answers · asked by Anonymous in Business & Finance ➔ Corporations
I guess specifically I wanted to know if it's ok to pay these types of expenses out of my biz checking account. It would be a mess sending my landlord or the light company 2 separate checks: Each for 50%. Sorry I didn't clarify that. As for tax deductions, I'm familar with that and my tax guy handles that for me. Thanks, and I look forward to your answer.
2006-08-16 14:09:07 · update #1
As long as you keep acurate records and document everything, go ahead.
2006-08-16 16:04:44 · answer #1 · answered by Steve R 3 · 0⤊ 0⤋
I assume "your place" is your home......if so, yes...HOWEVER...the space must be used exclusively for business....no mixed use...if so, you can pay or deduct, the percentage cost of shared overhead ie rent, utilities, maintenance, that is for business. If you own the property and sell for a profit, you will need to "recapture" the previous deductions and pay capital gains on the profit.
2006-08-16 14:03:01 · answer #2 · answered by scott n 2 · 0⤊ 0⤋