Paid From Your Business Account? It Doesn't Make It Deductible

Just because an expense was paid from your business account doesn't automatically make it a business deduction. The IRS looks at what the expense was actually for. I'm Lauren, Enrolled Agent and founder of Zero Fluff Books. I work with small business owners on federal tax and bookkeeping, helping make complicated tax questions easier to understand. In this video, we look at how to tell business expenses from personal ones, why mixed-use costs need a reasonable allocation, and why documentation matters when supporting a deduction. Here's what we cover: ● What makes a business expense ordinary and necessary ● Why the account you pay from isn't the deciding factor ● How to handle mixed-use expenses like phones, Internet, and vehicles ● Why owner draws and S-Corp distributions aren't business expenses ● What to consider with meals and business travel ● Why home office expenses have specific requirements ● When work clothing may qualify as a business expense ● Why keeping records close to the time of the expense matters ● How documentation can support your business-use position The takeaway is simple: it's not about which card or account paid for something. It's about the actual purpose of the expense and whether you can support the business use. For expenses used partly for business and partly for personal purposes, a reasonable and documented allocation may help support the business portion, depending on your facts and records. This video is for general educational purposes. Your actual tax treatment will depend on your individual circumstances and the records supporting the expense. 💬 Still wondering where the line falls on a business expense? Leave your question below and let us know what you'd like to see explained next. If you'd like help reviewing your own business expenses, use the link in the description to get in touch with Zero Fluff Books. Clear information. Practical answers. No unnecessary noise. #BusinessExpenses #TaxDeductions #SmallBusinessTaxes #IRS #TaxTips #Bookkeeping #BusinessTaxes #TaxPlanning #SmallBusiness #taxcompliance