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Level 15

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"and now am just going back and trying to  fix my mistakes and take them out of expenses and put them where they belong..."


This still doesn't tell us the tax entity Type: "I am sole owner of the business"


Are you operating as a Sole Proprietorship? If so, the Spending of business funds for Non-Business expense isn't expense, but Expenditure of Owner Draw = from Equity. Put your name for payee and from Equity Draw. Not Fuel Expense.


"This was a for 2 rodeos, in return they hang a banner in the arena with my business name and number so advertising will work, they ask for donations"


Did you take a picture of the sign? That's all you need as Proof of Advertisement.


"so thats what i called it, i am terrible at explanations....."


You're doing fine; they really should know better how to get funding, because they are overlooking some potential.


"so I keep track of the mileage for business trips and only deduct that, my personal use is limited"


That's fine.


"but I do drive to and from work which is 5 blocks from my house, I pay for half my gas and i use company debit card for half"


That's Meaningless. Don't split Operating Cost. Track mileage and pay everything Personally. There is no "half."


"When i deposited downloads from bank feed the gas debit card purchases came through"


Because you used the Company Checking account.


"so i just put them in fuel expense account kowing I cant deduct them but NOT knowing how else to do it"


Owner Draw from Equity for Personal.


"if thats what I need to do"


Yes, that is the Tax Regulation.


"but then it seems I am paying for business fuel unless I can pay myself mileage from the business which I have no idea how to do...."


No, you cannot Pay Yourself for mileage. The Mileage Allowance has a fuel component. Let's do this Simple analysis: you stated you intend to pay Half fuel personally. But you also described the Reality is that most of the use might be Business. You are Cheating yourself, with your "half" concept. Concepts are fine, but following the Tax regulation provisions is the better option.


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