Hi QBO Community,
I'm a sole proprietor. In May, I purchased a rental property valued at $500,000. For the sake of discussion, I invested $100,000 cash from my personal account and borrowed the balance using a mortgage under my personal name ($400,000). For the remainder of the month of May, I made some minor business expenses on my personal credit card (let's say $1000). Finally, as of June I opened a business account, registered my business as a sole proprietorship, and began using the business account for all transactions moving forward.
My questions for the community are:
- How best to categorize/report the use of personal funds to purchase the asset and take on the mortgage liability?
- How best to categorize/report the business expenses on my personal credit card?
I have tried searching online, but the best practices are unclear. And, before someone comments, I am aware that mixing personal and business expenses is a mess and I will be keeping the accounts mutually exclusive going forward :).
