Can you use your business lines of credit for your personal use and write it off on your business taxes?
Jul 23, 2009
in
Business Line Of Credit
I have four business accounts:
Dell
Office Depot
Staples
Exxon
If I were to use my Exxon for half business and half personal, is that illegal? What are the stipulations on using your business credit for personal credit and writing the expenses off on your taxes? This will be the first year that I am doing real business. I just want to make sure I am doing everything right.
I have a legitimate business with a Tax ID Number and I do have one client so far. The only major purchases I have done is bought a new Dell computer for my home/office. Also, I have bought some office supplies but that’s about it.
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2 comments
dulcrayon on July 23, 2009 at 7:44 am
your home office has new, complex, laws. check with your accountant on how he/she wants you to document usage.
as for you business credit accts. you may use any/all you want for personal legally. it only becomes illegal when you try to claim them on your taxes-that’s when IRS can come calling.
depending on your business type. these personal expenses could be calling on prospective clients, gas/mileage, office supplies, meals (with client), etc. just document everything. in many instances it is not how proper you are as how proper you appear. if it looks legit then IRS flags will not be raised. this leaves you with only the random audit.
terlynn_1370 on July 23, 2009 at 7:44 am
If you’re planning on writing it off for business expenses, it has to be just that, a business expense. It’s your card, you can use it for whatever you want, but you need to only be claiming the business expenses. If you get audited and you’re claiming something that’s not being used for your business there’s going to be trouble.