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We provide hardware to contractors all the time. They don't own the hardware so the loaner does not trigger a taxable event for them. When the contract is over, they return the hardware. The hard part about this in the current day and age is getting the units through customs.

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In the U.S. the issue isn't a taxable event, as in a gift. The issue is 'independent' contractors working on equipment supplied by their 'client'. This is one of several tests the IRS can use to reclassify them as an employee for tax purposes.

This tends to be more of an issue for solo contractors rather than contract houses as the IRS tends to look the other way on most of the larger contracting outfits.

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