she buys very little company product with her personal credit cards but pays off the whole balance using the company checking account. is this legal, shouldnt she be using her peronal income to pay the personal credit cards, the company is incorporated.
2007-06-16 04:39:51 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If she's taking tax deductions on her business return for the personal expenses, then that's tax fraud and she could be in major trouble if and when she gets caught.
If she's just paying with the business credit card, but separating out the personal expenses from business expenses for her tax return and only claiming the business expenses, then it's OK.
2007-06-16 04:45:47 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
The way I read your question, she is paying off personal expenses using the company checking account, in other words, company money.
No, it's not all right. How can you keep your accounting straight, let alone keep track of your taxes?
Get a second credit card and use it only for company purchases. Pay that off with company money.
If she takes payments from the company, puts that in her personal account, and then pays off her personal credit cards from that, that would be manageable.
2007-06-16 06:14:00 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
No, opening a business will not raise your personal credit score. No, you cannot freeze your interest rate due to being disabled. If your problem is that your payments go primarily to interest, then you need to make larger payments. The amount going to interest will stay the same, so the increase in the payment will go to reducing your debt.
2016-05-17 08:26:25 · answer #3 · answered by ? 3 · 0⤊ 0⤋