AccountingBLOCK

Charly · 04-15-2008, 01:23 PM

I did not get a straight answer from my ex-CPA. I have searched for many hours in the internet regarding this seemingly simple-enough question. If it's not an expense, which account is it and/or how can I setup that account?

Thanks.

mztman · 04-15-2008, 01:26 PM

What kind of entity do you have ?

flexdeck · 04-15-2008, 01:27 PM

Unless you are a C-corp it is not a business expense and should not be paid with a business check. If you did pay with a business check you need to code it to either an equity account, note receivable or note payable.

Charly · 04-15-2008, 01:29 PM

Quote:

Originally Posted by mztman

What kind of entity do you have ?

Its an LLC

mztman · 04-15-2008, 01:30 PM

If we are talking about an LLC, income taxes are the personal responsibility of the business owner and are not a business expense. You would post them to something like Owner's Draw.

If these are corporate income taxes then an expense accounts called Income Tax expense would be acceptable.

04-15-2008, 01:23 PM	#1 (permalink)
Charly Status: n00b Join Date: Mar 2008 Posts: 26 Credits: 389	Paying Income Taxes with a Business Check, is it an expense? I did not get a straight answer from my ex-CPA. I have searched for many hours in the internet regarding this seemingly simple-enough question. If it's not an expense, which account is it and/or how can I setup that account? Thanks.

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04-15-2008, 01:26 PM	#2 (permalink)
mztman Status: n00b Join Date: Apr 2008 Posts: 10 Credits: 220	What kind of entity do you have ?

04-15-2008, 01:27 PM	#3 (permalink)
flexdeck Status: n00b Join Date: Mar 2008 Posts: 24 Credits: 339	Unless you are a C-corp it is not a business expense and should not be paid with a business check. If you did pay with a business check you need to code it to either an equity account, note receivable or note payable.

04-15-2008, 01:30 PM	#5 (permalink)
mztman Status: n00b Join Date: Apr 2008 Posts: 10 Credits: 220	If we are talking about an LLC, income taxes are the personal responsibility of the business owner and are not a business expense. You would post them to something like Owner's Draw. If these are corporate income taxes then an expense accounts called Income Tax expense would be acceptable.

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