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November 22, 2024
Question

Splitting auto expenses across two businesses

  • November 22, 2024
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I purchased a truck this year for use in two businesses and for personal use.  The primary business is an llc with S-corp election.  I used funds from this business to make a large downpayment on the truck and the truck is listed as an asset in this business.  The second business is an STR which is in a Qualified Joint venture with the wife.  I will make the 60/40 business to personal use ratio if I combine use from both businesses.  I'm using actual expenses method.   CPA advised to expense all the vehicle expenses from both businesses under the S-corp and then send an adjustment from the STR business to the S-corp to account for the percentage that was used in the STR.  Two questions.  First is this a legit method of doing it, and if so how do I go about recording that adjustment in QBO?  Both businesses have their own QBO account.  TIA