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Leasing to yourself - Djmurria - 01-16-2021
Didn't know where to post sorry but just curious. Is it illegal to open a leasing company and lease to yourself as a trucking company? And would it be worth the extra hassle? Ive read truck payments can't be written off as tax deductibles but depreciation and lease payments can.
Say you had both legally open and just charged yourself the truck payment and a little more for maintenance since the leasing company would have a low profit amount basically what's leftover after maintenance would being able to use the lease payment as a tax deduction on the trucking side offset having the 2nd business with low profits. Still learning about business taxes and taxes in general so please excuse my stupidity.
RE: Leasing to yourself - Rawze - 01-16-2021
Depreciation on an item like a vehicle, etc... by the way can only be legally claimed by the company who's name is on the title as the title holder.
Despite what some ill-informed CPA or other accountant might tell you, there is no such thing as "double-dipping' your tax deductions, depreciation, etc... no matter how you try to get around it.
-- Also, a lease is considered a 'Rental' in the eyes of the law with regard to trucks... Who is the complete idiot who told you that you cannot claim every single penny spent on that lease (rental) as a business expense? -- Sounds like you have either been on social medai garbage-can bandwagon .. or someone is real shady that is telling you what to do.
RE: Leasing to yourself - Djmurria - 01-17-2021
This stupidity didn't come from anyone but me lol. I was just curious about it. Trying to figure out business taxes before I have one. Still got allot of figuring out lol. Going to try to explain better whats in my head though from my reading on taxes.
From what I've read for truck drivers truck loan payments can't be written off as a tax deductible you write off the interest on the loan and depreciation, but lease/rental payments can be written off.
So if you had one LLC that owned/financed the truck and you leased/rented to your trucking company would it help tax wise?
And can you maybe help give me a better understanding on the business tax side? Do you pay taxes on the money earned minus tax deductions, or do you pay on money earned minus expenses and tax deductions?
RE: Leasing to yourself - Rawze - 01-17-2021
ALL of the statements you have made so far are so absolutely incorrect in so many ways that I am not even going to begin to straighten it all out.
What I said was in the post above as my very first reply was very clear... if you did not understand it then I would suggest that you find a professional to manage your money and taxes.
RE: Leasing to yourself - Djmurria - 01-17-2021
(01-17-2021 )Rawze Wrote: ALL of the statements you have made so far are so absolutely incorrect in so many ways that I am not even going to begin to straighten it all out.
What I said was in the post above as my very first reply was very clear... if you did not understand it then I would suggest that you find a professional to manage your money and taxes.
I dont understand business taxes and I'm trying to learn before i get a truck and was curious on that work around.
Do you have some where I could look more into how business taxes work Everything i keep pulling up is for how each way you file works or how to file.
RE: Leasing to yourself - Rawze - 01-17-2021
if your mentally diluted idea were legal... even slightly... then I could replicate the idea over and over ... and make 500 companies and llc's and sublet them all from each other in the manner your disillusional brain seems to think is some kind of a double-dipping tax-break scam.. and have all 500 companies that claim s$it against each other so hard that the IRS would owe me moneys just for simply existing and I could get rich just sitting on my arsse and scamming them...
STOP SMOKING THAT WEED-PIPE ... GET IT OUT OF YOUR MOUTH AND GO FIND SOME OTHER FORUM WITH THOSE MENTALLY-DISILLUSIONAL TAX QUESTIONS AND 'CHEAT-THE-SYSTEM' SCAM IDEAS!
RE: Leasing to yourself - Rawze - 01-17-2021
(01-17-2021 )Djmurria Wrote: This stupidity didn't come from anyone but me lol.
...
Yup... its pretty dumb.
(01-17-2021 )Djmurria Wrote: ... From what I've read for truck drivers truck loan payments can't be written off as a tax deductible you write off the interest on the loan and depreciation, but lease/rental payments can be written off.
.....
This wishy-washy part of your statement is completely off-key.
You have somehow been completely mis-informed .... IF IT IS AN EXPENSE... AND IT IS BUSINESS RELATED .. IT IS DEDUCTIBLE AGAINST YOUR GROSS EARNINGS! .. PLAIN AND SIMPLE!!! ...PAYMENTS, INTEREST, ALL OF IT IS PART OF YOUR TRUCKS OPERATING EXPENSES!.. if you had to pay it to stay in, or operate your business... it is an EXPENSE.
AS AFR AS DEPRECIATION GOES ... I ALREADY ANSWERED THAT ONE VERY WELL ABOVE!.
"can only be legally claimed by the company who's name is on the title as the title holder.". It CANNOT BE DOUBLE-DIPPED!!! -- The trucks depreciable worth CANNOT START OVER JUST BECAUSE THE TITLE CHANGED HANDS either. IT IS A ONE-WAY TRIP ON DEDUCTION THAT ONLY EVER CAN ACCUMULATE TO THE TOTAL WORTH OF ITS new-truck value FROM THE TIME IT LEAVES THE MANUFACTURERS FACILITY BRAND NEW, UNTIL IT GOES TO THE JUNK YARD ... NO MATTER HOW MANY HANDS IT GETS INTO OR GETS RENTED, FINANCED, SOLD, OR LEASED TO.
I.E.> IF Whoever had it before it got into your name claimed 100% of the vehicles worth on depreciation ... then there is ZERO DOLLARS LEFT that can legally be claimed as depreciation by the next title holder. Otherwise, I could just lease it to myself or sell it to myself or a friend and back and forth it goes every so often and claim its worth forever and ever... THIS IS ILLEGAL AND CALLED FRAUD!
and by the way ... you said .. "from what i've read" ... I think you need to throw whatever source of info that is in the trash can real fast if that is what it is telling you. Sounds to me just like some social medai garbage.
(01-17-2021 )Djmurria Wrote: ...
if you had one LLC that owned/financed the truck and you leased/rented to your trucking company would it help tax wise?
...
YEAH --- IT WOULD CREATE MORE PAPERWORK FOR THE IRS TO AUDIT YOU BY ... THAT IS WHAT IT WOULD DO AND THAT IS WHAT YOU WOULD GAIN FROM IT ... BEING AUDITED EVENTUALLY, THEN PAYING HEFTY FINES AND INTEREST ON ALL THE DOUBLE-DIPPED OR FALSE CLAIMS YOU MADE IN A SCAMMING WAY ... THERE IS NO SUCH THING AS DOUBLE-DIPPING TAX BREAKS OR ONE COMPANY CLAIMING LOSSES AND TAX DEDUCTIONS ON CLAIMS THAT ANOTHER COMPANY MADE OR ANY OTHER GARBAGE SCAM IDEA YOU SEEM TO HAVE STUCK INTO YOUR HEAD THERE ... THIS SOUNDS LIKE SOMEONE TRYING TO SCAM THE SYSTEM WOULD COME UP WITH PLAIN AND SIMPLE AND IT IS CALLED FRAUD ... PEOPLE GO TO JAIL FOR SUCH ILL-BEGOTTEN IDEAS!.
(01-17-2021 )Djmurria Wrote: And can you maybe help give me a better understanding on the business tax side? Do you pay taxes on the money earned minus tax deductions, or do you pay on money earned minus expenses and tax deductions?
WTF??:: BUSINESS AND OPERATING EXPENSES ARE TAX DEDUCTIBLE AND ARE THEREFORE TAX DEDUCTIONS!. That last sentence here you made makes absolutely zero sense.
Its pretty damnned straight forward.... YOu earn money (referred to as GROSS INCOME) ... you have a paperwork(or transaction) trail showng where the money went to. Payments on the truck... electric bill at home... pants for work... fuel, lease or load payments .. car payments at home .. new stove for the wife ... groceries ... any cash you withdrew against your pay ... replacement parts and repair bills for the truck ... etc.etc.etc.
THE IRS SEES ALL OF IT, PERSONAL, BUSINESS, AND OTHERWISE AND EVEN TRACKS THE AMOUNT OF CASH YOU WITHDRAW FROM THE BANK TOO!. DOES NOT MATTER HOW YOU SLICED IT UP!
If it is ANYTHING related directly to operating your business (pants for work, loan/lease, etc truck payments, fuel bill etc.) ... you claim that as a loss against your (GROSS) income therefore showing that you actually earned LESS MONEY than was given to you overall .. and what that leftover amount as (called NET income) .. that you used for yourself ... not related to your business .... like your home electric bill and car payments,.. stove for the wife ... groceries, etc.etc... -- YOU OWE TAXES ON IT! .. PLAIN AND STRAIGHT FORWARD AND SIMPLE!. PERIOD!
If you have your business split into several companies.. then that is STILL exactly what will happen .. you can't use multiple companies to claim the same expenses, losses, or receipts duplicate times or multiple times ... or the same appreciation, deductions, claims, or extra interest .. or any claims of losses to income you never got,.. it is all considered FRAUD, PLAIN AND SIMPLE!.
Also: ALL LOSSES AND DEDUCTIONS CAN ONLY BE CLAIMED AGAINST ACTUAL EARNED INCOME .. THERE IS NO MAGIC FAIRY IMAGINARY MONEY THAT 'COULD HAVE EXISTED' SCENARIOS BULLS$ITS. Otherwise I could just bill myself for a million dollars every year (or convolute it thru multiple companies like in your twisted fradulent-stricken statements) and claim it all as a massive loss and never pay taxes again ... EVER!.
I am not about to make an entire website dedicated to answering and explaining all the absolutely ill-informed statements and twisted questions you have asked on here ... taxes related to business and trucking are pretty damned straight forward... and not all the convoluted garbage your touting. If your truly that clueless, twisted, and confused, then you need professional help from a professional tax and business finance person.. not me or my website.
Keep it up and you will get kicked off here for trolling... because it appears to be just that at this point. I already answered you as best anyone can without writing a book on all the hundreds of things wrong with your words so far. Go back and study what I already said ... Otherwise take your questions somewhere else ... maybe over on the brainwashing machine called social medai, where there are plenty of other disillusion individuals willing to placate your twisted fantasy logic.
RE: Leasing to yourself - Djmurria - 01-17-2021
You don't have to be rude about it was literally just asking because I don't know, and have very little knowledge of business taxes, and reading online wasnt helping me so I asked.
Not touting anything was just trying summarize my understanding so u could see where I'm coming from off what I've read and see if it would work.
Go ahead and kick me IDGAF I'm trying to get a better understanding of how stuff work and your being an ass about it. Sorry I wasn't born knowing all the tax jargon and what not. I even dropped the lease and trucking company and just wanted info on business taxes in general, which you just gave in between you being rude in the last post, which helped thanks.
RE: Leasing to yourself - ahub86 - 01-17-2021
If you had a second LLC that’s you were leasing the truck from, then you would have income in that second LLC for the lease payments coming in. It would be a wash and more paperwork for nothing. The only place I have heard of this working in some way(and I am no expert). Is when you have a business that needs or uses an building that you own. Then you lease or rent it from yourself in a second company. You would be able to write off your rent payments on the first business side taking the whole payment as a deduction, where normally a building would be depreciated over 30 years(which the total amount per year depreciation may possibly only add up to a portion of your monthly loan payment). But still that second LLC picks up that income. But the benefit here would be rental income as passive income and you would only pay income tax not self employment tax. So a portion of tax savings
Doesn’t work as well with a truck because I believe trucks are depreciated over 7 years... or sooner if you take section 179 bonus depreciation. So the payments on a loan for a truck normally line up better with the amount being depreciated every year.
And trucks do get depreciated by you when you buy them. But when the previous owner sells the truck(or you “sell” to your second LLC) that person takes that as income. At least anything that is a Above the depreciated value on their books. For example if you have had a $25000 truck for 5 years and your depreciated value is down to $10000. You sell the truck for $25,000 to someone else(or your second llc) you pick up $15000 income.
Again I am no expert... but it is hard to get around taxes. Like Rawze said probably consult an accountant. (And a good one will give you good advice even if we don’t want to hear it. Lol)