- 3 -
Hairston (the lease agreement).1 Petitioners’ equipment was
essentially the same type of heavy construction equipment that
also was owned directly and leased by Hairston to its end users.
Throughout 1995 and 1996, petitioners’ equipment was stored in
and subleased from Hairston’s rental equipment storage yard,
where petitioners’ equipment was commingled with Hairston’s
equipment.
As consideration for leasing their equipment to Hairston,
the lease agreement states that petitioners “may be” paid by
Hairston up to 40 percent of Hairston’s basic end-user lease
1 The entire lease agreement between petitioners and
Hairston, Inc., provided as follows:
EQUIPMENT LEASE AGREEMENT
Ken and Delores Hairston may from time to time
purchase equipment by check or personal bank loan and
may lease that equipment to Hairston, Inc. dba A.I.M.
Equipment Rental.
A.I.M. Rental will assume all responsibility for
the leased equipment, providing insurance, collecting
and paying appropriate taxes, etc.
Ken and Delores may be paid up to 40% of the basic
rental rate only (excludes tax, fuel, delivery and p.u.
charges). Repairs to maintain the equipment may be
charged against the amount paid to Ken and Delores
Hairston.
Payments may be paid each quarter or when
sufficient revenues have been collected.
Ken and Delores will calculate and maintain
records and will be responsible for loan re-payments
and personal income taxes.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011