Leasing to yourself

[smorgan87]

Creating a leasing company is how big companies protect assets from liability, not to commit tax fraud. If you create a leasing company that purchases trucks then lease the truck to the authority then ur authority will pay the leasing company (and write off the lease payment) but now ur lease company has to claim that income and can only write off depreciation of the asset so what did u accomplish? Nothing (probably paid more taxes). Many equipment finance companies these days are structuring their loans as leases for this purpose. U write off all payments thru the loan instead of depreciating the asset. Of course once paid off you no longer have that deduction.