Single Member LLC; How to properly record car expenses when used for personal & business?

pallc · ‎March 19, 2021

Not quite sure how to go about this. I am a single member LLC; I opened up a Business Checking & Saving to separate business from personal. I plan on writing myself a check from the business account each time I want to take out money on a bi weekly basis for personal use.

My question is how do I handle my expenses such as my car payment/insurance/repairs? I will be using it for business and personal (It is registered to my personal name NOT the business), and while I understand the idea that I can deduct half of those expenses as business related, I'm in the dark on how I can record this properly in QuickBooks & properly pay them so I can provide reliable records for IRS.

john-pero · ‎March 19, 2021

Your business deduction of your personal vehicle does depend on the mileage log you keep contemporaneous with your driving.

Business Use of Vehicles - TurboTax Tax Tips & Videos (intuit.com)

Topic No. 510 Business Use of Car | Internal Revenue Service (irs.gov)

So, only if you drive exactly half the time for business can the business deduct half the vehicle cost.

How? Better for business to write the checks and record % as business and balance as Member Draw.

pallc · ‎March 25, 2021

Hello John,

To clarify on the "how" to carry this out:

So if I had say car insurance that is $200.00 a month; I would essentially do the following:

check	vendor	amount	memo
101	State Farm Car Insurance	100	50% business use of car

check	vendor	amount	memo
102	Owner "John Smith"	100.00	owner draw - personal use of car insurance

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Single Member LLC; How to properly record car expenses when used for personal & business?

Single Member LLC; How to properly record car expenses when used for personal & business?

Single Member LLC; How to properly record car expenses when used for personal & business?

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