But, Crystal - why not?
Because any business expert will tell you, and I agree, that there is always an area of your business that needs to be IMPROVED. There is always a sector of your business that needs attention, where the money would be better spent.
Because the future is unknown, what if next month is filled with curveballs and you need capital to solve the dilemma?
Because the second you pay for your piece of equipment - it has ALREADY depreciated. And that depreciation is your loss. Whereas with leasing the depreciation (of up to $125,000) is tax deductible.
If you are itching to spend your money and purchase the equipment outright, do so, but then LEASE it back to yourself.
2 comments:
The tax deductible part is reason enough to lease and not pay cash. With the heavy taxing on small and medium sized business we need to deduct as much as possible, great tips.
It is so true... as business owners we all need to take advantage of every possible caveat that exists to benefit us. I hope to be shining the light on all kinds of things. Good luck with your business, I would love to hear about it - should you ever have a spare moment.
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