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Your company renting from yourself

Smitty58

LawnSite Senior Member
Location
Trenton ,Ohio
Are there tax benefits of renting to your company. If you are a part time person chances are you have one truck which is your personal vehicle as well as your work vehicle. So can you rent that truck back to your company? I've heard of someone renting their office building that they own to their company ,so can you do the same thing for equipment?
 

LB1234

LawnSite Gold Member
Location
Central Jersey
I don't think 'renting' is the proper term...but anyhow

I do it with my truck. I 'lease' it to the company. I pay mileage...its currently at $0.425 cents. The benefits are that I do not have to claim the mileage reimbursement as income and the business gets to take this as an expense (tax writeoff). The 42 cents is derived from the government taking into consideration fuel costs, wear/tear, insurance, etc.

With that said, there are also cons. For one...sometimes you wind up not getting enough back for the year...in other words lets say a new transmission needed to be installed...the business can't pay for the repair...that was built into the mileage factor.
 

bruces

LawnSite Senior Member
Location
Independence, MO
Smitty58 said:
Are there tax benefits of renting to your company. If you are a part time person chances are you have one truck which is your personal vehicle as well as your work vehicle. So can you rent that truck back to your company? I've heard of someone renting their office building that they own to their company ,so can you do the same thing for equipment?
The company would have to be a separate taxable entity, a corporation, llc taxed as a partnership, etc for this to be allowable.

You can't rent from yourself (if you are operating as a sole proprietor or single person llc taxed as a sold proprietor.
 

bruces

LawnSite Senior Member
Location
Independence, MO
DLS1 said:
Hey Bruce you still in lawn business or back to CPA work only. I can't bring up your site.
I'm still part time in the lawn business, but I let the web site go. I need to take it off of my signature.
 
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