Strategy: In today’s environment, leasing business equipment instead of buying it is often advantageous for tax and nontax reasons. Here’s a closer look at the main reasons why leasing may be better for your business.
Tax benefits of leasing
When leasing equipment, your company will typically use a “fair market value” lease (or a true lease). It gives you the option to return the equipment at the end of the term at no further obligation. If you decide to continue using the equipment, you can renew the lease or buy the equipment at the going price.
With that kind of true lease, you can fully deduct your annual lease payments. That’s usually preferable to buying equipment, which generally results in mult...(register to read more)