Question:   If I, a sole proprietor, pay personal expenses out of my business bank account, should I count the money used as part of my income? Can I write these expenses off?

• You would include the money used to pay personal expenses in your business income when it was earned by your business.
• You would not write off these expenses because they are not ordinary and necessary costs of carrying on your trade or business.
• Personal, living, or family expenses which are not specifically provided by law are not deductible.
• It is recommended that you not mix business and personal accounts as this makes it easier to keep records.