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A person recently bought some equipments from auction. He wants to sell them to a leasing company with a big markup.
This "big markup" would generate income upon which the purchaser of the property would be taxed.

And then his company pick up the lease and put them as assets.
I dont see a problem with this side of the transaction. The terms of the lease will indicate the length and nature of the expense deduction for the lessor.

Will IRS be okay with that? I know he is going to pick taxes on the gain, is the other issue I need to be considered.

As long as the terms of the transactions are treated at "arms length" and there are no related party issues involved structuring a sale as you mention should create no unusual issues with the IRS.....

IMHO of course and based on the limited facts given in your post.


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