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bendeeb14
Level 1

Can I pay myself out of business account into personal account and write it off as a business expense?

Can I pay myself out of my business account into my personal account and write this off as a business expense?  Should I count it as income in my business account or into my personal account?  I am a Realtor and need help.  
2 Comments 2
LeizylM
QuickBooks Team

Can I pay myself out of business account into personal account and write it off as a business expense?

I'm glad you reached out to our support, bendeeb14.

 

While it is not advisable to mix personal and business funds, you may encounter situations that will require you to do so.

 

I recommend consulting an accountant for additional assistance to ensure your records are in shipshape. They can offer advice on how to handle business accounts and personal funds.

 

For additional references about managing personal or business expenditures, check out these articles:

 

 

Let me know if you have follow-up questions. I'm happy to support you. Have a great day.

Rainflurry
Level 14

Can I pay myself out of business account into personal account and write it off as a business expense?

@bendeeb14 

 

Can I pay myself out of my business account into my personal account and write this off as a business expense?

 

Only if you're a corporation or an LLC taxed as a corporation.  But, you need to be on the payroll, pay payroll taxes and pay yourself a reasonable salary.

 

If you're a sole proprietor or an LLC taxed as a sole proprietorship, you cannot pay yourself a salary/wage and record it as a business expense.  Any funds removed from the business for personal use should be recorded as an owner's draw which is a reduction of equity, not an expense.  Create an equity account called Owner's Draw and assign that account to the check.

 

Sole proprietorships and LLCs taxed as SPs are entities disregarded as separate from their owners.

 

 

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