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.
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.
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.
Well of course it does! Brain drain there. My understanding is that the company shows no ownership of the trailers. And a lease may last a month up to 6 months. So don't believe it is a capital lease. But I will question further before finalizing the return.
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