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Updated over 2 years ago, 05/12/2022
Separate business credit card and personal credit card?
I only have one rental property, and I use my personal credit card to purchase whatever I need for the property. Any thoughts on exclusively using separate credit cards for business and personal expenses? My main concern is the headache of separating the charges come tax season. I rarely use my credit card for either business or personal expenses, however. But nonetheless, should I have two separate cards?
I do and would, it makes it easier in the long run. Especially as you accumulate more properties.
- Contractor/Investor/Consultant
- West Valley Phoenix
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Definitely separate them...you'll have a nightmare come tax time! I used to have two cards for the business - one to get cash rewards and one for miles....just make sure to pay them off every month.
There are a lot of moving parts here to consider, you've only scratched the surface. Assuming with one property, your income from the rental passes through to you personally- in that case, there is no danger of comingling and it won't affect your taxes at all.
Now- the second part is liability. If you are trying to separate your personal assets from your business- and within reason, you should, then comingling funds like this is a no-no. There's more to it than just that, but it's a start.
- Corby Goade