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Updated over 7 years ago on . Most recent reply

Personal Expenses vs. Business Expenses Help
Hello BP, I am looking into purchasing my first duplex, which I will be owner occupying. I have a question about how to manage my banks accounts. I want to keep my personal income/expenses separate from my business income/expenses, however this will be tricky because the rent will not fully cover the business expenses. This means that my business checking account will go negative and be closed unless I pump personal money into it.
My tentative plan is to do the following:
Person Checking Account:
+Salary (from W-2 job)
-1/2 PITI
-personal groceries, gas, spending, etc.
Business Checking Account:
+Rent
-1/2 PITI
-Business Expenses
My rationale is that only half of the PITI is used for business and the other half is a living expense for me.
Let me know if anything is unclear or if you have suggestions on how to handle the two checking accounts.
Thank you!
Most Popular Reply

For house hacking, I don't think it's necessary to separate everything. More trouble than it's worth.
At tax time, just allocate your expenses between person and the rental.