Leasing to yourself

[ahub86]

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)