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July 3, 2009Lease personal equipment to myself for business?
It depends on the type of equipment and who will be using it.
Typically, most equipment will cost the same whether it is leased to you or to your business. The only equipment that would cost more if leased directly to the business would be automobiles. The reason being is that commercial auto insurance is more expensive than personal auto insurance. What to look out for here is that if you have employees who ever drive that vehicle and it is registered/insured in your name, your insurance company may leave you hanging. So, I always recommend paying the additional insurance in order to protect yourself from any accidents that your employees may get into.
If you want to post more info about the situation and the type of equipment, I can expand upon my answer and tailor it more towards your specific situation.
Michael T. Hanley, CPA is the Managing Partner of the Smithtown, NY CPA Firm, Merl & Hanley, LLP and the author of Effective Tax Planning for the MicroBusiness.
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It depends on the type of equipment and who will be using it.
Typically, most equipment will cost the same whether it is leased to you or to your business. The only equipment that would cost more if leased directly to the business would be automobiles. The reason being is that commercial auto insurance is more expensive than personal auto insurance. What to look out for here is that if you have employees who ever drive that vehicle and it is registered/insured in your name, your insurance company may leave you hanging. So, I always recommend paying the additional insurance in order to protect yourself from any accidents that your employees may get into.
If you want to post more info about the situation and the type of equipment, I can expand upon my answer and tailor it more towards your specific situation.
Michael T. Hanley, CPA is the Managing Partner of the Smithtown, NY CPA Firm, Merl & Hanley, LLP and the author of Effective Tax Planning for the MicroBusiness.
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