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Central Iowa | We grouped all the machinery together cam up with a value than had our accountant right up a 10 year lease with a balloon (Can make it small or large case dependant) payment at the end. Rent money is not subject to self employment tax. Can shorten term up if you want cause he may want to trade equipment before fully owning but this really isn't problematic if your really not afraid of taking a loss.
I suggest helping the guy out but don't give it all to him on a silver platter make it beneficial to both of you. Its good for the young guy to have to work for it. You give it to him you may just give him enough rope to hang himself good but if he has to make some payments from the get go may keep him from jumping in too deep from the start. | |
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Recaptured Depreciation
