Hi,
Like I said, you would need to check with your accountant. If you are
buying $500,000 worth of equipment per year, you can't depreciate a
vehicle in a single year, because there are annual limits. In that case,
leasing is a better deal because you can write off the total amount of
the payments without using any of the annual depreciation limits.
When you buy, you are paying sales tax on the entire purchase amount,
compared to leasing you only pay sales tax on the monthly payment.
Also, leasing is generally less expensive than buying. I just purchased
a new Chevy 3500HD Duramax truck, and even at 0% interest rate, doing a
lease was $150/month cheaper. I will keep the truck 2 years, so that
saves me $3,600 in monthly payments. I could "invest" that money into a
basic retirement account and earn 8% interest on that money over those 2
years, making the difference even more. :)
Every case is different an unique. Use an accountant that knows all the
angles and can help you the most. Cash flow is king.
Travis
On 5/27/2015 11:46 AM, Sean Heskett wrote:
Compared to 0% the "tax advantage" does matter much and the interest
savings is greater than the "tax advantage"
You can still depreciate the asset and lately we've been able to
depreciate 100% of the vehicle in the first year when you purchase.
Compared to writing off the lease expense (and if you calculate the
actual interest rate of a lease it's WAY above 0%)
When interest rates are higher then you could argue for a "tax
advantage" of leasing but at 0% they are basically paying you money to
finance it because of the time value of money.
-Sean
On Wednesday, May 27, 2015, Travis Johnson <t...@ida.net
<mailto:t...@ida.net>> wrote:
Leasing vehicles has other tax benefits that you don't get with
buying. Check with your accountant.
Travis
On 5/27/2015 11:28 AM, Sean Heskett wrote:
Interest rates on cars are so low right now it's worth it just to
buy.
We just got 0% for 4 years on our new tundra.
2 cents
-Sean
On Wednesday, May 27, 2015, Josh Corson <j...@bluebitnetworks.com
<javascript:_e(%7B%7D,'cvml','j...@bluebitnetworks.com');>> wrote:
What has been the experience with leasing commercial cargo
vans? Any hidden gem companies out there that are awesome to
work with?
Pros and cons?
Thanks!
--
*Josh Corson*
Operations Manager
BlueBit Networks
bluebitnetworks.com <http://bluebitnetworks.com>
o. 573.355.5381 c. 573.259.3073
