In my small business (S corp. apt. house), I charged business repair/supply expenses on my personal credit card since I don’t have a business card. I use that personal card 100% for the business to keep it easy at end of year. In my business checking, I had set up some monthly autopay deductions .
At end of year, my total expenses charged to the credit card exceeded the amounts of my autopays.
The business had a loss of -$4,390.
The total card charges for repair expenses were $10,449 and the amts. of the autopays were only $7,919.
So the difference was paid by my personal checking in amt. of $2,530. (Any amount owed at end of month on that credit card is automatically paid in full from my personal account)
I also had some non- expense draws in the amount of $1,240.
Is the amount owed to me $2,530 ($10,449-$7,919) or $1,290 which would include a deduction from the amt. owed to me for those non expense draws?
How do I treat the amount owed to me from the business for my payments of its business expenses if I don’t treat it as a loan? Should I add it to retained earnings and if so where do I do that? If on the M-2 worksheet which line?
And do I have to report the non-expense draws as distributions in this scenario? Can I just pay those distributions rather than report them? If so, how do I treat the two amounts and where do I include them?
Thanks very much for any help.
