Brian’s Tax Musings

If you use your personal car for business purposes, how can you write off your expenses?  If you have another entity (S or C Corp or LLC) you are supposed to submit an expense report to the entity either for mileage (51 cents a mile) or your actual expenses for the mileage, which can be difficult to calculate.  If the entity pays your auto bills for you, that is a personal payment, either a draw or a distribution or shareholder loan depending on the entity.  It is better to submit and then reimburse rather than have the entity pay; just for clarity and having the documentation directly tie to a check.

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