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02-04-2001, 05:18 PM
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LawnSite Member
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Join Date: Dec 1999
Location: WEST MI
Posts: 196
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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.
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Tom
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02-04-2001, 07:59 PM
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LawnSite Member
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Join Date: Mar 2000
Location: moline, IL
Posts: 106
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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.
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02-04-2001, 08:09 PM
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LawnSite Bronze Member
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Join Date: Feb 2000
Location: San Antonio, TX
Posts: 1,407
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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]
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<i>Alan</i>
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02-11-2001, 01:04 AM
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LawnSite Bronze Member
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Join Date: May 2000
Location: Southern, Maine
Posts: 1,317
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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.
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