Leasing your equipment to your own llc

[suejax]

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?

[huggytree]

ask your accountant

[Evan]

Is it a Schedule C operation? For tax purposes, you won't be able to do this.

[suejax]

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.

[Evan]

Answer still doesn't change, as it seems like the LLC is disregarded (thus filing Schedule C).

[suejax]

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?

[Evan]

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.

[suejax]

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.