Tax Benefits of Equipment Leasing
EQUIPMENT LEASING MAY PROVIDE TAX BENEFITS FOR INCREASED BUYING POWER
The tax benefits and tax advantages of equipment leasing can be extremely important to a businesses cash flow. By carefully structuring your lease purchase with your accountant, certain types of lease buyouts, such as true FMV, may create tax advantages for your company if they qualify as true operating leases, which are also known as true leases.
In addition to the advantages of conserving valuable company working capital and preserving existing bank credit lines, leasing business equipment rather than paying cash may offer tax benefits and savings if structured correctly. Operating or "true" lease payments may be fully expensed and accelerate tax deductions when compared to lengthily depreciation schedules. Conventional bank and other financing often have term restrictions and relatively higher down payment requirements than leasing. Furthermore, virtually all bank loans must be capitalized and cannot be depreciated. Allstate Capital offers 100% financing including soft costs, warranties, tax, freight and installation.
It is important to check with your accountant or CPA about any potential tax benefits or tax advantages for proper advise. Allstate Capital does not offer tax advise to any of our clients.