The Green Industry's Resource Center

ArizPestWeed · #1 02-01-2007, 10:29 AM

Ever heard of this ??
You buy trucks and lease them to your business .

Cut out the middle man .
I guess you lease them to your self for a $1000 a month

wriken · #2 02-01-2007, 10:49 AM

I've heard of it before, my sister-in-laws father did that when he was in a business, also some buildings I think. But I just lease thru ford or dodge, I figure less red flags for the irs to see.

mrusk · #3 02-01-2007, 10:50 AM

I'd advise you to talk to a account that acctually knows alot about leaseing. I would not take financial advice from other lawn guys on this site.

Be sure to talk to an accountant that fully under stand leasing. So many people have no idea what the benfits really are of leasing and just look down upon it.

IRRITECH · #4 02-01-2007, 10:55 AM

Yes, I have heard of that, but as of yet I cannot get a straight answer from my accountant. I seriously doubt that you can lease it back to the company for more than the fair market value, but that should still be more than your payments.

Which would definately help your bottom line.

mrusk · #5 02-01-2007, 11:00 AM

Quote:

Originally Posted by IRRITECH

Yes, I have heard of that, but as of yet I cannot get a straight answer from my accountant. I seriously doubt that you can lease it back to the company for more than the fair market value, but that should still be more than your payments.

Which would definately help your bottom line.

I am not sure if there are limits on what you can lease it for. But i know you got to remember that any money you make on that lease is taxable!

ArizPestWeed · #6 02-01-2007, 11:17 AM

Quote:

Originally Posted by mrusk

I am not sure if there are limits on what you can lease it for. But i know you got to remember that any money you make on that lease is taxable!

Oh yeah , I did think of that .

Lawnworks · #7 02-01-2007, 04:52 PM

Dave Ramsey has some interesting thoughts about leasing(from a dealer)... he seems to think you might as well light your money on fire.

fiveoboy01 · #8 02-01-2007, 08:06 PM

Quote:

Originally Posted by Lawnworks

Dave Ramsey has some interesting thoughts about leasing(from a dealer)... he seems to think you might as well light your money on fire.

Yes, but he is an expert on PERSONAL finances.

I believe the question here is in the context of leasing for business use.

Lawnworks · #9 02-01-2007, 08:24 PM

Actually he made it perfectly clear for business or personal use... it is throwing away money. Ramsey has a multi-million dollar business, so I think he has the experience. I can quote it out of the book if you want. It really is a great book on building the wealth.

corey4671 · #10 02-01-2007, 08:25 PM

Quote:

Originally Posted by fiveoboy01

Yes, but he is an expert on PERSONAL finances.

I believe the question here is in the context of leasing for business use.

Dave owns his own business and does not lease cars. He does not endorse leasing EVER. As a matter of fact, he makes a good point on vehicles used in a business...what are you doing? you DRIVE them twice three times as much as a daily driver therby DESTROYING the value of the vehicle. Why not buy an older USED vehicle that has already taken the depreciation beating but is still dependable...YESSS...there IS such a thing!! THink about it guys..and don't give me this I WORK HARD I DESERVE A $40K truck...that's how a 5 year old rationalizes things..I want it I want it I WANT IT NOW!!!