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May 22, 2024
Question

Personal Equipment Rental to Sole-Proprietor Business

  • May 22, 2024
  • 1 reply
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As a sole-proprietor, can I, or is it beneficial tax-wise, to rent my personally owned equipment to my new business? For example, I have some tools that will be used for the business. They aren't necessarily always used for the business though. Can I come up with some sort of hourly rate for tool/shop rental as a way to track the expense of the equipment rather than converting the equipment to be owned by the business?

1 reply

May 22, 2024

It is not beneficial to rent your tools to your Schedule C sole proprietorship.

What would be a business expense on Schedule C would be miscellaneous income elsewhere on your tax return.