Leasing personally owned vehicle to employer
I got a good question from a reader today who works for a company that needs to transport products by semi trucks. He was wondering if he can buy the truck and lease it to his employer.
The answer is yes. You can lease a personally owned vehicle to a business/employer. It’s important, however, to have a written lease with all terms specified in writing.
Though this isn’t an exhaustive list, you’ll want to include the following in your lease:
-What is the company going to pay for, and what will you continue to pay for? (e.g. will you or the company pay for insurance and maintenance?)
-Are there any limits on the company’s use of the vehicle? (e.g. mileage or geographic limits)
-Payment amount, payment schedule, and mode of payment
-What will happen in the event of late payment or nonpayment?
In addition to delivering the equipment to the company at the time specified in the lease, you also typically need to pay taxes on any income received from the lease. Be sure to check with your tax professional for more details on your specific situation.