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I co-own an two-member LLC with my wife. We're in the US.

We own a car, and rent a home.

For operating our LLC, we'll use a separate room exclusively and regularly for business use only (admin and managerial stuff). We'll use our car for occasional business use as well.

As far as I know, we can deduct a portion of our rent and car-related expenses.

But I'm not sure exactly how. For example, (1) when we pay rent, do we pay the portion for business use using the funds in our LLC bank account (and the remaining using the funds in our personal account)? I feel like paying the full rent from my personal account only (or the other way around) doesn't feel right. (2) when we pay for gas, do we do the same (paying using two different sources of funds)?

Thank you.

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  • You should probably talk to an attorney in your State. You're asking for a legal advice here. The general advice is not to commingle business and personal accounts, which specifically technicality can trip you really depends on the case law in your jurisdiction.
    – littleadv
    Mar 22 at 14:18
  • SCRUPULOUS record-keeping. If you are writing off a portion of the rent, that part of the space must be used for NOTHING BUT the business; be prepared to explain exactly how it is partitioned off from the rest of the space (preferably a separate room), and to account for exact square footage. Similarly, to write off auto milage you need to track ALL usage of the vehicle, dates/miles/purpose. Which account you pay it from is usually not an issue; your business can reimburse legitimate purchases made from your personal accounts.
    – keshlam
    Mar 24 at 20:10
  • @keshlam Thank you very much. The last part (which account I pay it from) was what I was most curious about. I'm very meticulous when it comes to book-keeping... have always been that way my entire life. Thank you very much again!
    – PurplePenguin
    Mar 25 at 23:59

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