Posted by Ed Copp (OH) on May 03, 2000 at 08:00:17:
Sheik,
Go to legal corner, on this site, there has been a lot written about your questions such as, The IRS considers a LLC to be a non entity. Also you may be able to use Sch.139 depriciation on the truck (?)…ED
Company Truck - Posted by Sheik
Posted by Sheik on May 03, 2000 at 07:06:40:
I have an LLC (partnership with spouse) that owns about 4 small notes at the moment totaling aprox 15K (resulting from lonnie type deals).
I am currently looking to purchase/lease a used pickup truck. I, of course, would like to have my LLC purchase/lease the truck.
My question is - Since the LLC does not have substantial income, I am wondering whether it is a good idea for the LLC to be the owner of the truck. I mean, does the LLC have to “justify” purchasing/leasing a truck?
Also, if the LLC is the owner, can I write off the total cost(payments) of the truck or do I still have to do the mileage thing ( I will be using the truck for personal commuting as well)
Please comment
Thanks
Sheik
Re: Company Truck - Posted by JHyre in Ohio
Posted by JHyre in Ohio on May 03, 2000 at 11:28:36:
I use a corporation to do the actual deals and an LLC to hold the notes…that way the notes are not “dealer” property. A truck implies an active, as opposed to passive, business. If your note-holding is a passive business, I would not put the truck in the LLC. I also agree with Rob’s comments re risk profile of notes being lower than that associated with motor vehicles. As such, I would hold truck separate from LLC, preferably in an active entity.
John Hyre
Re: Company Truck - Posted by Rob FL
Posted by Rob FL on May 03, 2000 at 09:39:57:
Another consideration is insurance. You may have to pay a higher rate because it is being used for business purposes. Also if you get in an accident all of the LLCs assets could be in jeopardy.
In my opinion a “dangerous asset” like a truck should be far removed (ownership-wise) from “safe assets” like promissory notes.
My .02