Buy or Lease an EXMARK LAZER HP?

[ETturfman]

I've been talking to my local Exmark dealer about a Lazer HP and I can't figure out which is the best way to go. Buy it or lease it? The dealer told me that a lot of LCO's lease for tax purposes. Any suggestions?

[Mid Rivers]

What are the tax purposes? You can depriciate the mower anyway and claim any interest you pay on a loan. The lease I saw on a walkbehind had an interest rate that was around 18%. I would like to know the advantage of leasing also.

Thanks

[John DiMartino]

Lease payment is 100% right off the top of income,since it is an expense.The mower depreciation amount isnt equal to the amount you can deduct as a lease,for me,it was better to lease it-for you it may be different.I have a $1 dollar buyout at the end of the lease-that way you get to totally deduct all of the payment-and get the machine-the higher interest rate is the downside.

[joshua]

buy it, personly i would never lease something. just doesn't sit in my stomach as well. just to many things that could happen.

[Roger]

My accountant told me that if the equipment purchases are less than $20K per year, the full purchase price is deductable in the year of purchase. No depreciation schedule is used. I didn't discuss the case of purchases greater than $20K because I know I would not spend that much in a given year.

Vehicles are done differently. Different rules apply for those having a GVW less than 6K pounds, than those over 6K.