Can i lease a limo we own outright to our limo company.

Asked over 1 year ago - Garden Grove, CA

We are in orange county Calif . i have borrowed to buy 2 cars and hold the title . Would it be cleaner tax wise to lease them to our company . If i can do that do i need a dealers license in Calif for that ?

Attorney answers (3)

  1. Nicholas Basil Spirtos

    Contributor Level 20
    Best Answer
    chosen by asker

    Answered . For the tax implications, you should talk to your accountant.
    Yes, you can lease the cars to your company. You do not need a leasing license.
    Just make sure you have a good leasing agreement.

  2. Albert Lee Crosner

    Contributor Level 19

    Answered . I would recommend that you search for a good tax attorney near your local area there in Garden Grove. I will change the Practice Area to include tax attorney which should help to get some responses from tax attorneys. I would also suggest that you look at "Find an attorney" at the beginning of Avvo and type in "tax attorney" and "Garden Grove" for the city. You can then check out whoever appears as having that background. Best of luck.

    Mr. Crosner is licensed to practice law in California and has been practicing law in California since 1978. The... more
  3. Mansoor Hussain Ansari

    Contributor Level 8

    Answered . You can do this. However, make sure it is at fair market value. Such transactions are heavily scrutinized by the IRS. Anything but fair market value will be deemed an arm's length transaction and the benefits will be taken back.

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