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Johnny Branch replied on June 23, 2008 19:12 to the question "How do I keep track of expenses outside the business account?" in Less Everything:
You could write a business check made payable to you reimbursing the business portion of expenses paid personally.
This practice does not violate the required separation of corporate and personal funds. Thus you keep in tact your corporate veil protection. The trick is to make sure you have the correct allocation of business vs personal expenses. For proper allocation of office in home deductions you need to read the IRS publication 587. This publication can be downloaded from irs.gov in pdf for html format. When reading be sure to first study the qualifications for office in home deductions on page 2. Then if you do
truly qualify review page 6 on how to set up the allocation formula.
The single reimbursement check should then be categorized into the specific business deductions areas such as rent or utilities for tax filing next year.
