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I use a Bank of American Visa credit card that accrues airline miles for both personal expenses and business expenses. However, when it comes tax time, it's a burden to separate out which transactions were personal expenses and which were business expenses.

The simple solution for this problem would be to just open another credit card account and use one account for personal expenses and the other for business expenses. However, my airline card comes with a hefty annual fee (that I'd rather not pay twice) and I'd prefer to avoid the credit ding associated with opening another credit account.

Can anyone recommend a 'minimal-effort' method to separate out personal vs business transactions on a single credit card account?

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    Find a cheaper CC? Do you really earn enough extra miles to justify the annual fee on the first one? Depending on what you use each for, there's a good chance you can find something more financially beneficial anyway, e.g. citi double cash or amex blue cash (everyday or, if you spend enough to justify the annual fee, preferred). – Kevin Mar 6 '17 at 6:03
  • What kind of solution are you looking for? You've told us separating out the transactions is a burden, but you haven't told us what method you are currently using to do this. You've ruled out getting another card, which is the standard solution to this problem. Separating business and personal expenses is one of the many obligations of being a business owner. – Ben Miller - Remember Monica Mar 6 '17 at 12:44
  • If you open another card that has a fee, can you deduct that as a business expense? – Michael Mar 6 '17 at 16:03
  • @MichaelC. That never even donned on me... thank you for pointing that out. – Elliot B. Mar 7 '17 at 3:47
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Try to get a second card in your business' name, with a separate card number (like you would get one for a spouse).
They may or may not allow that free (you wouldn't want to pay a second fee), and it might be only possible with the second card bearing the same number, which makes it useless. But it is worth a try.

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I am assuming this is USA.

While it is a bit of a pain, you are best off to have separate accounts for your business and personal. This way, if it comes to audit, you hand the IRS statements for your business account(s) and they match your return.

As a further precaution I would have the card(s) you use for business expenses look different then the ones you use for personal so you don't mess another one up.

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