"Buy
what appreciates, lease what depreciates."
Dale Carnegie
| Tax Structures: For the small-business owner, there are two primary types of leases that determine tax benefits: operating or true leases and capital or finance leases. A lease is usually considered a true lease if, at the end of the lease term, the lessee has the option to purchase the equipment at fair market value. Conversely, if the lease agreement contains a bargain purchase option, such as $1 or 10% of the original purchase price, it would be treated as a finance lease. Always consult a CPA for advice on proper lease treatment and which lease structure is most appropriate for you. |
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