How can I buy truck for my rental LLC?

Question

I have six rentals that all I lease, manage and repair and I need a pick-up truck. I went to a bank to get a car loan but the bank is not able to give me a loan as I do not have 2-years of tax return on the LLC name. Thus, I am taking car loan on my ssn instead of LLC’s EIN to use it for my rental business. Can I now transfer the truck title on my rental LLC and then LLC to make monthly payment to me as business expense? How else I could handle this so I can get tax benefit? Thanks

Ashish Acharya · Answer

Form tax perspective, your LLC can make payments directly to bank and get tax deductions or you making a payment will qualify for deductions as well.The SMLLCs are disregarded for tax purpose, so both ways are ok.

The question is how do you want to handle this from legal perspective. Your LLC might not wanna pay your personal loan and vice versa.

Curt Davis · Answer

Personally, I think you are complicating things. Just buy the truck under your name and be done with it. When you do your taxes all you get to use for deductions is your mileage.

How can I buy truck for my rental LLC?

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