Depreciation

[PINEISLAND1]

how is the depreciation handled differently on a lease as opposed to a purchase?

I am wondering if I should be looking into leasing a truck next time.

[zimm4]

On A lease you write off the lease payment as A expense. You do not write off the equipment. Make sure its A true lease. With A 10% buyout.

Leasing is best if you dont want the equipment afterwards.

[LoneStarLawn]

Depreciation is not consider for tax deductions on leases. Lease themselves are fully deductible (business items only). Depreciation rates for taxes are given for purchased items.

[Edited by LoneStarLawn on 02-04-2001 at 07:12 PM]

[landscaper3]

We lease all our equipment through Telmark, All our Walkers mowers, trucks and sanders. On our A.G. lease we write off 100% of our monthly payments and do a $100.00 buy out at lease end on mowers and sanders and 10% buy out on trucks. We tried many ways and found we save thousands a year going with the lease instead of loans or other ways.