I want your help on this issue: tax advantages, are there any?, can you buy the equipment once you've finished the leasing?.
Thank you
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I want your help on this issue: tax advantages, are there any?, can you buy the equipment once you've finished the leasing?. Thank you |
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It all depends on the time you 're planning to keep the assets, because for short term I would recommend leasing. Although you can find out if you have a possibility of buying the equipment after the leasing is over. Are you planning to buy new or used equipment? If there's no need for it ti be new, you can get used equipment at a lower cost, so you need to consider that before leasing. If you buy new equipment, you might have the option of buying it, as I said before, but I'm not sure you can do it with use equipment. Take into account that technology changes constantly, so if you are leasing assets that become out of date quickly you might want to consider to take short leases, specially if technology is vital to your business. Buying the equipment, can cost a lot of money, that you need to have available to spend, so depending on your situation, leasing usually cost a less money. You have tax benefit when leasing: you can deduct the total lease payment right away. If you buy, you can only deduct the interest as an expense. So then again, it all depends on what you need. Hope this helps, but to be sure, stop at this site and see a comparison between buying and leasing. |
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