❌ Tax Mistake #1: Mixing Personal and Business Expenses
- Christina Nguyen
- Feb 12
- 2 min read
As an Adult Foster Home (AFH) owner, one of the biggest tax mistakes you can make is mixing personal and business expenses. It may seem harmless at first, but blending your finances can create a tax nightmare—leading to IRS audits, inaccurate deductions, and costly errors at tax time.
🚨 Why This is a Problem
When you use the same bank account for both personal and business transactions, it becomes difficult to track deductible expenses and prove legitimate business costs if the IRS ever asks. Plus, it can lead to:
❌ Missed deductions because you forget which expenses were business-related.
❌ Errors in bookkeeping that make tax filing more stressful.
❌ IRS scrutiny, as mixed finances can look like you’re underreporting income or claiming improper deductions.
💡 Quick Tip: Separate Your Finances NOW!
The best way to protect yourself? Open a dedicated business bank account and follow these simple rules:
✔️ Deposit all AFH income into this account—don’t mix it with personal deposits.
✔️ Pay all business expenses from this account to keep records clean.
✔️ Use a business credit or debit card for purchases related to your AFH.
✔️ Never pay personal bills from this account—keep the separation clear.
This one simple step will save you time, reduce errors, and make tax season so much easier!
✅ Avoid the Most Common Tax Mistakes AFH Owners Make
Keeping business and personal finances separate is just one of the top tax mistakes AFH owners make—but there are more! To help you avoid costly errors, I’ve put together a free guide just for AFH owners like you:
Inside, you’ll learn:
✅ The most common tax mistakes that cost AFH owners money
✅ How to structure your finances for easier tax filing
✅ Simple strategies to reduce your tax liability
Don't wait until tax season—get your finances in order now!
💬 Need help organizing your AFH finances? Let’s chat! Schedule a consultation to make sure your tax situation is set up for success.
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