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Start saving money
After the equipment purchase is completed, half of the advisory fee will be refunded within 2 months.
Option 1
Advisory fee
Total value: $5,297
Today Just $1,898
Option 2
Advisory fee + LLC formation
Total value: $7297
Today Just $2,898
You can offset W2 income, business income (Schedule C and K1), and capital gains. Keep in mind that losses applied to W2 income are subject to business loss limits. For 2025, the limits are $313,000 for single filers and $626,000 for married couples filing jointly.
To deduct depreciation losses from your active income, you need to participate in the activity. Here are some ways you can participate:
1. Every week, you’ll receive an email to opt in for renting your equipment.
2. Check your equipment via your dashboard, which I usually do for 5-10 minutes each morning.
3. Visit the locations where your equipment is kept. Your equipment might be spread across different states, giving you a variety of places to visit.
4. Consider the time spent deciding to take action. For example, if you decide to purchase more equipment next year, that time counts.
5. In May, the rental platform holds a two-day owner appreciation event at their headquarters.
If the rental company hits their monthly rental cap, the revenue gets shared among all equipment owners. This cap is usually reached in the first 7-8 days of the month. Even if your equipment doesn’t rent, you’ll still get your share of the revenue.
You’ll be added as an additional insured on the rental platform’s policy, so no extra insurance is needed.
Yes, you can pay cash. However, one of the main benefits is using leverage. Most banks only require a 10% down payment, which allows you to buy more equipment or invest your funds elsewhere.
The platform tries to place your equipment in areas you prefer, but it ultimately depends on where the rental company needs it to meet customer demand.
Yes, you can use your own bank, but they need to agree to specific loan terms in order for the program to function properly. The loan should be on a 10-year amortization schedule with the current interest rate.
During economic downturns, contractors are more likely to rent equipment instead of buying it. To just cover your loan payment, the utilization rate would need to drop to 43%. For example, during the 2008 recession, United Rentals’ utilization rate dropped to 53%.
The rental income for the first month is prorated based on when you purchase the equipment. You’ll receive the full rental income starting in the second month, and that payment will be made in the third month.
The equipment will be bought back at year 5 or 6. Typically, the buyback occurs at the year 5 mark. The equipment is bought back for 68% of the purchase price. There is around 57% remaining on your loan. You will receive the difference which ends up being your initial capital plus a little extra.
Because the equipment is bought back at 68% of the purchase price and no longer in service, you will have to recapture 68% and pay taxes on it. To offset this, you can buy more equipment or use a different strategy. 32% is free from taxes.
The platform fee covers administrative costs, maintains the platform, and ultimately helps to keep their lights on. The platform fee is a deductible expense to your business. Some banks might roll the platform fee into the loan, however, this will increase your loan payment and decrease the return on your investment.
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