Question

Can a s corp lease or rent a vehicle to from another s corp?

Forum|Forum|3 years ago
August 1, 2022
1 reply
0 views

Can an s corp lease or rent a vehicle from another s corp? What are the rules restrictions regarding this? Anything that should be kept in mind with this to avoid problems.

Not A Product Question

M

Mike9241

to properly answer your question more info is needed. what is the relationship between the two corps? what is the relationship between the stockholders of each? what is the business purpose? will the lessor have a profit from the leasing?

C

cbusaAuthor

No profit the one business has a truck that is presently unused and the other business could use it at jobs. The two s corps do have an owner in common. There is no plan to generate any significant profit from the leasing other than cover the costs of the lessor.