Here goes:
A client did not keep mileage logs for 2004, he is having me prepare his 1120 and his 1040.
He says he wants to rent the vehicle to the LLC for the amount of his monthly vehicle loan payment of $580.
He asserts the vehicle was 100% LLC business use, but he did not transfer the vehicle to the LLC, he wants it to be a rental, and he asserts he kept no mileage logs.
Sooo, is there any problem with the single member LLC renting the vehicle and flowing the rental payment over to him?
I think this although a personal property vehicle rental would be a schedule C, am I correct? or is this a Schedule E activity.
If the client is getting a K-1, can he get the rental payment on the K-1, or does it need to be on a 1099-MISC?
Can the client depreciate the personally owned vehicle on his personal tax return?
Do I place this depreciation on schedule C or Schedule E?
Can the client do this at all, i.e. rent a personal asset to his own single member LLC and take a deduction on the LLC side for rental payments to himself?
Thanks for any insight.
Marc
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