USA Tax treatment for sale of equipment with future repurchase rights

[CD CPA]

I just bought a piece of equipment for $100,000. I plan to sell it for $1 and retain rights to use the equipment indefinitely. I also have rights to buy the equipment back for $1. I do not have to make any monthly/recurring payments to use the equipment and have rights to refuse to let others use the equipment. The person who is buying my equipment will be housing it as it is large and also paying to insure it. Can I claim the loss of sale of equipment on my business tax return? Do I need to do anything with the rights to future use and repurchase rights?

 

[bklynboy]

Not a tax pro but sounds fishy that this is not arms length. Meaning you buy something for 100K and immediately sell for 1. Don't think IRS will look fondly on this if you can deduct.