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iaff801
July 18, 2022
Question

Fuel usage split between personal and business

  • July 18, 2022
  • 1 reply
  • 38 views

I am a one man LLC with a mobile outdoor power equipment shop. My vehicle is both personal and business use. ALL of my fuel receipts go on the business and then at the end of the year for tax purposes I calculate the business portion which makes it correct for the IRS. However, within QuickBooks I am not getting a true picture of profit and loss because even my personal use fuel is showing up as a business expense. Is there any way to only get the business use fuel into Quickbooks? Do I have to go in at the end of the year and make a journal entry to remove the personal portion?

Thanks for your time...

1 reply

C
Candice14
Level 8
July 18, 2022

Good morning, @iaff801. 

 

It's great to see you back in the Community. I'd be more than happy to give you some insight into splitting your fuel usage between personal and business. 

 

If your personal expenses are coming out of your business account (the one that's already connected to QBO), then you could potentially use this solution to record the expenses: How to enter personal expenses: paying w/ company funds. 

 

However, if your expenses are coming out of a separate personal bank account, you don't need to track that in QBO because it's not tied to your business. 

 

To be sure, I recommend your accountant to review these two options to see what's best for you. 

 

Let me know which direction you and your accountant decide to take. We're always here to help get you back on track. Take care! 

I
iaff801Author
July 18, 2022

Hi Candice,

I'm not convinced that either of those answers would correct my problem. Gasoline (actually diesel) is both a business and personal expense, since my truck is used for both. I always record it as a business expense in Quickbooks but at the end of the year I calculate the business portion and that is what I claim on my taxes. However, the rest of it remains in Quickbooks as business expense based on how I enter it. Maybe if I entered it as personal expense year long and then entered the business portion after I made the calculations as a journal entry at the end of the year? 

I
iaff801Author
July 18, 2022

Actually I cant do that either as I use my business debit card to purchase fuel...

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