Give truck to driver after two year operation

I have no clue as to your original question. But I suspect you also need to get some expert tax advice about this kind of situation before you go very far into the "how to".

 

Are you talking about lease purchase?

 

there was a company operating out of one of the gulf states that did that about 15 yrs, (or so), ago. don't remember the name.

 

Welp ya got a taker here when you reach that 2 year milestone. No need to worry about that much at least PM me for my info

 

How's the pay in the mean time?

A friend was talking to someone with the same idea. Are you out of Idaho?

I can see if the driver was going to take possession of the truck after two years they will likely take good care of it.

 

Probably be a good idea and a good way to get out. Save you from paying so much taxes when you get out of it.

 

I'm pretty sure it's going to matter as to what type of business you are... sole proprietor, C corp or S corp, LLC etc. This is a question for a CPA. I think that in some cases if the truck is fully depreciated there is no tax penalty, but I'm not positive. I know that I have removed fully depreciated equipment on my S-corp as worn out and no longer functioning without any sort of penalty.

 

Calling @D.Tibbitt

Mr Tibbitt’s company actually has a decent lease purchase deal. Truck gets a percentage of the line haul. Driver gets paid by the mile. The good thing about this sort of arrangement is that the driver does not get punished for going home. Payments do not snowball. Truck gets paid off, driver always earns a paycheck when he runs.