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GreyCapitalGroup
Level 1

Gas & meal receipts

Good morning,

I run a small 3 member LLC that buys, renovates, & manages rental property. We charge gas to the business credit card for the driving done for the rehab projects. The vehicles are personal. We also buy drive thru lunches for the contractors on the business credit cards and want to count them against the renovation expenses. I have a few questions regarding tax time & record keeping.

1. Do I need to keep receipts (scans or paper) for gas if they show up on the company credit card transactions?
2. Do I need to keep receipts (scans or paper) for the drive through food we buy for the contractors on the projects if it shows up on the company credit card transactions?
3. If I'm charging gas to the business card, can I deduct that come tax time? 
4. How does mileage fit into all this? I use QBO to track mileage, can I deduct that as well for my personal vehicle if I'm using the business accounts to pay for gas used for business operations


Thank you in advance!

1 Comment
Rustler
Level 15

Gas & meal receipts


@GreyCapitalGroup wrote:

Good morning,

I run a small 3 member LLC that buys, renovates, & manages rental property. We charge gas to the business credit card for the driving done for the rehab projects. The vehicles are personal. We also buy drive thru lunches for the contractors on the business credit cards and want to count them against the renovation expenses. I have a few questions regarding tax time & record keeping.

1. Do I need to keep receipts (scans or paper) for gas if they show up on the company credit card transactions?
2. Do I need to keep receipts (scans or paper) for the drive through food we buy for the contractors on the projects if it shows up on the company credit card transactions?

 

Yes, a credit card statement is not sufficient by itself


3. If I'm charging gas to the business card, can I deduct that come tax time? 

 

The gas is an expense, so any expense for the business reduces the net taxable income for the business.  However, since this is being used in personal vehicles you need to have a travel log which includes at the minimum, date and time for start and stop, mileage start and stop per trip, and the reason for the trip.  You also need the starting mileage on 1.1.xx and the ending mileage on 12/31/xx so that the percentage of use can be calculated.  You use that percentage of use number to move that portion of gas expense to each partners (you have a partnership by the way, not a 3 person llc) equity drawing account.


4. How does mileage fit into all this? I use QBO to track mileage, can I deduct that as well for my personal vehicle if I'm using the business accounts to pay for gas used for business operations

 

mileage is a tax time expense that, if you elect to use it, you can not also deduct any vehicle related expense that have been paid, it is one or the other but not both.


Thank you in advance!


 

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