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I'd like to cash my business check written to my business account and use that money for petty cash. Is there a maximum dollar amount per month that I can do this legally without sending out red flags to the IRS in New Jersey?

Submitted: 1168 days and 4 hours ago.

Category: Tax

Value: $9

Status: CLOSED

Optional Information:
Pompton Plains, New Jersey

Posted by RD 1168 days and 4 hours ago.

Answer

there is no maximum dollar amount per month that you can withdraw and use for petty cash. If I am understanding it right, you are going to deposit the business checks to business account and than take that money out for petty cash. There is no maximum dollar limit for doing this.
Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.

1168 days and 4 hours ago.

Reply

I would like to write my business check out to "cash" then cash it through my business account for petty cash

Accepted Answer

It is Ok to do that. My suggestion would be to keep the amount below $10,000 at a time.
Also, keep good records of the payments made in cash.

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.

Expert:	RD
Pos. Feedback:	99.4 %
Accepts:	6469
Answered:	1/2/2007

Certified Public Accountant (CPA)

CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..

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