Hi - I have an S Corp and recently established a DBA under that S Corp. To fund the expenses of the DBA, I needed to move money from the S Corp checking account to the DBA checking account.
How should I treat that on my taxes?
Thanks!
you moved money within your s-corp. It is neither income nor an expense. in effect, you moved money from one bank account to another with the sane entity.
So you're saying that if I just combine the transactions and balances from both entities, I'll account for that money without showing it moving between the two accounts, right?
Wow. if that's right, it's much too simple!
Yes, this is correct. When you transfer money from your S Corp's checking account to the DBA's checking account, you're moving money within the same legal entity. This transfer isn't considered income or an expense for tax purposes. It's simply a reallocation of funds within the same entity
Curious why you have separate bank accounts?
Are both of the business accounts tied to the same EIN?
Hopefully both bank accounts are reflected on the S corp financials?