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What account do i enter gas receipts If I deduct mileage and not actual expenses ?

Forum|Forum|7 years ago
February 15, 2019
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Hello again, I have been entering my gas receipts in an expense account which i know is not right because i use the standard mileage deduction instead of actual, I use the vehicle for both personal and business use so I am unclear as to what account type to post my receipts to, I use the company debit card to put gas in so it comes out of my business checking account so I need to account for the debit in checking without it going in profit and loss report as an expense.... also I have the same problem with donations to the local school and American legion, they are not non profit so not deductible but i have then in an expense account so I'm assuming this will work the same as the gas receipt account.... and third is bad checks, i have been lucky enough to only have had one so far and the customer came in and made it right but when it came through my bank feed in QB I put it to an expense account then when the customer paid the bad check amount when it came through bank feed i put it to the same expense account to zero it out, same question as the other 2 what account type should I use in this case and is that the way I should be doing it ?

QuickBooks Desktop

Best answer by Rustler

I realize that, that is why i am asking the question "What Account" for it not to show on profit and loss

@KAOS wrote:

I realize that, that is why i am asking the question "What Account" for it not to show on profit and loss

All expense accounts show on the P&L

I think there is a point of confusion here.

your business spends money and your record those expenses, auto expenses included

then at tax time, if you elect to use the mileage deduction, when you transfer the numbers from the company P&L to the tax form, you do not transfer any auto related expenses, including auto fixed asset depreciation

The tax form and your business accounting will not match when you take the IRS offer for things like mileage, simplified home office, etc. And that is fine.

A

Anonymous

If the gas is a business expense, then something like Auto:Fuel, or even Auto, if you don't care about the details.

KAOSAuthor

It is an expense but cant be deducted as an expense because i use the mileage deduction so I would like for it not to show up in the profit and loss report as an expense

A

Anonymous

You can do whatever you want in your books. Just because an expense can't be deducted doesn't mean you can't record it.

For example, I record my lease payment as an expense, but I may or may not include it directly on my taxes or deduct based on mileage.

qbteachmt

This is Not business: "also I have the same problem with donations to the local school and American legion, they are not non profit so not deductible"

Unless you can show where they Printed a thank you and your business is listed. That would make it Advertising. Only a C Corp has any charitable deduction provisions at all.

"but i have then in an expense account so I'm assuming this will work the same as the gas receipt account..."

You seem to be using the business for Non-business events = Equity Out or Loan to you.

"and third is bad checks, i have been lucky enough to only have had one so far and the customer came in and made it right but when it came through my bank feed in QB I put it to an expense account then when the customer paid the bad check amount when it came through bank feed i put it to the same expense account to zero it out"

That should be Balance Sheet activity, if you are getting it back. Or, use one Income account that shows this, not expense. Here's why: Look at the tax form this entity files. There is one line for Income from sales, one line for COGS, and one line as "contra-income" or Negative income, for Returns/Allowances. That is what you describe.

That tax form is the best reference for your accounting.

KAOSAuthor

OK.... Thanks again guys for your answers, I fully understand the tax regulations and what i can and cant deduct, I'm not looking for tax advice, I guess I just thought I could get the profit and loss report to match what will actually be income and expense so I could print the report and have all the information I needed to file my taxes from a single report, I wasnt sure that if I tracked mileage in quickbooks if it would go into profit and loss report and show double expense with gas receipts being entered also, I was just trying to get the P&L as close to reality as possible, advertisement on the donations and income on bad checks, thank you thats what I needed to know :smileyhappy:

qbteachmt

"I guess I just thought I could get the profit and loss report to match what will actually be income and expense"

Yes; that means Not Posting as expense, things that do not Qualify as expense. Do not confuse Cash Flow as Expenditure and Expense.

"I wasnt sure that if I tracked mileage in quickbooks if it would go into profit and loss report"

It's a Mileage Log; not actual Expense. That will be used to compute your Allowance on the tax prep.

I don't see where you told us this is a Corporate Owned vehicle or a Personal Vehicle or what is the Tax Entity type. All of this matters to your topic. We are doing our best to answer Blind to the facts.

"advertisement on the donations"

Let me help: Don't use those two words as if they are Synonyms. If you made a donation, that is Not Business Expense. If you have proof that you created Advertising, that is Advertising. Get a copy of the Thank You in the event program that lists all businesses that supported the event and keep it on file, for proof of Expense.

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