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niquie419
New Member

Do my home based business expenses have to be made from a business account in order to be included on my 1040 Schedule C form?

Or can i use both my personal and business accounts?
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2 Replies
rjs
Level 15
Level 15

Do my home based business expenses have to be made from a business account in order to be included on my 1040 Schedule C form?

You can claim business expenses on Schedule C that you paid from your personal account, but it's not a good idea. If you pay some business expenses from your personal account and some from your business account it creates a confusing situation that's hard to follow, and makes it look like you're fudging. If you get audited it will raise a lot of questions and possibly make the auditor dig deeper. It's best to keep your personal and business income and expenses completely separate, personal transactions in the personal account and business transactions in the business account.

 

Do my home based business expenses have to be made from a business account in order to be included on my 1040 Schedule C form?

Agreed ... mixing personal and business  invites the worst IRS audit scenario you can ever have in your worst nightmares.  Do NOT do this if at all possible EVER. 

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