Ric Smith wrote:

- quote -

I think IRS would simply disregard any so called lease
arrangements, and allow individual to put everything on
schedule c.

BTW, what purpose does this convoluted arrangement really
serve?

Other day a client revealed that he was buying such a unit,
and would then lease it to his son in law (SIL!) who would
then pay all expenses, a lease payment to FIL and receive a
1099-misc from the company he's driving for. (for whom he's
driving.)

Cheer$,
Harlan Lunsford, EA n LA

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Can anyone direct me to a reference(s) for the following:

Individual purchases other-the-road tractor unit.
Individual leases the unit to a trucking firm. Individual
drives the same unit for the firm as an independent
contractor and will be issued a 1099-MISC for the tax year.
The individual is responsible for all tractor unit expenses
except for insurance and tags. I know that the individual
can deduct expenses he incurred for operation of the tractor
unit, but who is allowed to take the depreciation for the
tractor unit? Where can I find the reference?

Ricardo Smith, EA
Dunlap TN

Ricardo Smith

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