I'm trying to finish up the 1120S for my wife's business and have a question: we both have corporate AMEX cards for our business and early on we were a little sloppy and charged some personal items to the card. I then paid off the card balance every month with a business check. My question is how do I go about balancing this in my books and 1120S. I know I can't deduct the personal items as a business expense (even though I paid them with business money). Basically I have: AMEX BILL: Business: $800 Personal: $200
Paid: $1,000 with business check
1120S Line 19 Attached Schedule: Total Deductions: $800Which leaves my 1120S and books out of balance because of the $200 personal stuff. Do I just consider the $200 a draw or dividend to the owner? Where does this show on the 1120S (if anywhere)? Any help is much appreciated.
P.S. - please no lectures on separating business & personal expenses - I know how bad that is and we've stopped doing it
- just got a bit sloppy for a couple months :-/