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2 Replies Last post: Oct 19, 2007 3:49 PM by ldemai

Lease personal vehicle to business

Oct 12, 2007 1:03 PM

ldemai 2 posts since
Oct 12, 2007

I want to lease a vehicle to my Sub S so I can depreciate it on my personal tax return to offset other income. Am I correct in thinking that I need to claim the lease income on my personal return, and that I can deduct actual vehicle expenses on the Sub S? The vehicle is primarily used for business.

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LUCKIEST 5,749 posts since
Aug 6, 2007

1. Re: Lease personal vehicle to business Oct 18, 2007 1:05 PM

The wording in your question makes it hard to answer.
Do you own this vehicle that you want to lease to the Corp??
Or are you leasing a vehicle from a lease company??
The question is ownership?? If you own the vehicle, it sounds like a wash.
Picking up income and deducting expense.
If the vehicle is primarily used for business, it is a deductible expense including depreciation.
LUCKIEST

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ldemai 2 posts since
Oct 12, 2007

2. Re: Lease personal vehicle to business Oct 19, 2007 3:49 PM

in response to: LUCKIEST

Yes we own the vehicle and yes, the lease income to us personally and the lease expense to the Sub S are a wash. We will take the depreciation on our personal return to offset other income. I figured it out that I need to report the depreciation on a Schedule C. Thanks.

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ForumsTaxes and Payroll

This Question is Answered

Lease personal vehicle to business

Oct 12, 2007 1:03 PM

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