Home› Accounting› Accounting Technical Support

Using a personal credit card to purchase laptop for business

AyresAcupunctureAyresAcupuncture Member Posts: 1

I am a single owner (president) S corp and need to get a new laptop for my acupuncture business (I work under my S corp and receive a 1099 to my S corp, not to myself/SSN). I have an Apple specific credit card that allows 0% interest for 18 months with purchases such as this macbook will cost, therefore want to use the personal CC to make the large purchase vs. buying it on my business CC (which requires immediate repayment), so my question is what is the best way to achieve this as far as repayment? Can i just pay the Apple CC directly from my business checking and describe the monthly repayment as "laptop" or do I have to pay personal-to-personal and write my "self" a check from my business each month? Any thoughts, tips, suggestions appreciated!

in Accounting Technical Support

Comments

  • Dante_BulluckDante_Bulluck Member Posts: 52 ✭✭

    I'd create a liability account and call it, say, "Owner's loan". Then you create a journal transaction to account for the purchase. Make it credit Owner's Loan, and debit the right asset account, and your sales tax liability account. When you pay parts of it, just make an expense from your bank account to that loan.

    If you don't care a bunch about keeping track of the exact number, you can just take money out of your business periodically and mark it as an expense to your bank account categorized to Investment/Drawings.

    Not sure if it's the best way, but it's how I would handle it.

Sign In or Register to comment.