Discussion in 'Business Operations' started by PINEISLAND1, Feb 4, 2001.


    PINEISLAND1 LawnSite Member
    from WEST MI
    Posts: 201

    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.
  2. zimm4

    zimm4 LawnSite Member
    Posts: 106

    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.

  3. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    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]
  4. landscaper3

    landscaper3 LawnSite Bronze Member
    Posts: 1,354

    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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