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why would a business lease equipment to itself my name is merrill taylor with tax tutor if you enjoy this video please hit the like and subscribe button below so here we have a common structure that i run into with clients lets take one of my clients he owns a state farm insurance company right so he has his state farm insurance company inside of an s corporation and thats where he runs that that business from he uh brings the income in from the business he pays his staff he does all that sort of stuff inside here this is his operating business now he happens to own the building that he runs that business from so he has the option of owning that building inside of his operating business or he can own that building outside of his operating business and then lease the building back to him so why why would he do that well the the short answer is its a legal liability issue and im not an attorney so i wont get into too much of the specifics about that but basically it helps separate t
