Schedule C leases equipment then leases to contractors

Forum|Forum|3 years ago
March 21, 2023
1 reply
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Opinions please. Trucking company leases trailers then leases them to the contractors working with them. It is being done to insure availability of equipment for the trucks. Question: should the income from leasing the trailers to contractors be included in the Schedule C or done on a Schedule E? My first thoughts are that it is a part of doing business and goes on Schedule C. They are not in the business of leasing. It is to assure availability to keep the contract they have with a shipper. Opinions appreciated.

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Best answer by IRonMaN

Renting real estate goes on schedule E. Renting equipment goes on schedule C. But before you get started you might want to verify if any of those leases are capital leases instead of operating leases.

IRonMaNAnswer

Level 15

Renting real estate goes on schedule E. Renting equipment goes on schedule C. But before you get started you might want to verify if any of those leases are capital leases instead of operating leases.

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