I believe I, the managing member of my llc, can lease my computer equipment to my llc. Anyone have any knowledge or experience with this?
I believe I, the managing member of my llc, can lease my computer equipment to my llc. Anyone have any knowledge or experience with this?
Last edited by suejax; 09-02-2011 at 02:56 PM.
Is it a Schedule C operation? For tax purposes, you won't be able to do this.
Small Business CPA
"A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."
I don't have an accountant, just a bookkeeper at this point, although I know I will have to have one.
The company is an llc, not a c-corp.
Answer still doesn't change, as it seems like the LLC is disregarded (thus filing Schedule C).
Small Business CPA
"A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."
I don't understand what the llc being disregarded means. If the expense of leasing the computer equipment isn't deductible what would be the best way to handle this? Should I transfer the ownership of the equipment to the business for equity and then the llc can use the depreciation expense?
For tax purposes, the "LLC being disregarded" means that there is no distinction between YOU and the LLC -- it's the same thing.
If you're leasing office equipment that is in your personal name, the business can deduct it. But you cannot lease a computer you own to your LLC. You could contribute it to the LLC and depreciate it.
Small Business CPA
"A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."
Thanks so much Evan...you've been very helpful. I have an appointment with a CPA. My mom is a bookkeeper and is gonna do my work free of charge til I can afford to pay someone. I just need guidance from an accountant.
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