Legally can we lease our truck to a subcontractor weekly?

Question

We are a contract company for cable/communications providers. We have an extra truck that we use for work. Can we lease it weekly to a 1099 subcontractor legally without any ramifications? If so, do we note the mileage before we lease it out, and only claim the mileage up to that date? (I assume the Subcontractor would claim the other miles or gas since he would be responsible for the gas/oil/ etc.) Please advise.

Answer 1

Yes. But, check with you accountant. I believe it would be better for you to claim the mileage, and have the sub-contractor claim their direct expenses, just like for a leased vehicle. Of course, you would need to report the lease amount as revenue.