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Can you use your business lines of credit for your personal use and write it off on your business taxes?

Author: admin | Posted: 09-03-2010 | Category: Line of Credit Business

I have four business accounts:

Dell
Personnel 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 buys I have done is bought a new Dell computer for my home/personnel. Also, I have bought some personnel supplies but that’s about it.

your home personnel 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, personnel 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 unsystematic audit.

Category: Line of Credit Business by admin

2 Responses to “Can you use your business lines of credit for your personal use and write it off on your business taxes?”

  1. terlynn_1370, on March 9th, 2010 at 9:34 pm Said:

    If you’re plotting 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 a upset that’s not being used for your business there’s going to be distress.
    References :

  2. dulcrayon, on March 9th, 2010 at 9:56 pm Said:

    your home personnel 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, personnel 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 unsystematic audit.
    References :

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