Question

Auto loan

Forum|Forum|4 years ago
October 27, 2021
1 reply
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Hello! I have an auto loan which is for a car that I use for both work, and for personal family use. How should I categorize this in quickbooks? Can this qualify as a business expense?

AdamNe

Hello @Miamimarinesurvey !

That is a great question. I'll start by suggesting you contacting a Quickbooks Live agent for assistance with your particular bookkeeping issue.

However, based on the info you provided here, I will say my advice would be to split the monthly transaction between business and personal expenses, based on a typical percentage of business to personal use. You can set Quickbooks up to do this automatically. If in a particular month you use the vehicle more for business than usual, you can fix the expense transactions in Quickbooks before closing the books. Also remember that from a tax perspective, the principal portion of the auto loan is not deductible, while the interest portion is.

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