I am in the market for a new mower. Have not talked to my accountant yet but my question is... What are the tax implications of a lease arrangement versus outright purchase? IE: Equipment cost is $8200.00. My understanding is by leasing for 24 months with a $1.00 buyout I pay no sales tax and can write off 100% of equipment cost as business expense. With a purchase, I go the depreciation method. However, what is the formula for depreciation? Which method will have the most favorable tax advantage? Thanks. P.S. The finance charge to the leasing company is app. $2.000.00 or app. $83.00/mo. I would be paying $10, 200.00, (w/no sales tax, 100% write off), vs $8200.00 plus $574.00 s.t =$8774.00 outright purchase,(how many yrs. and how much depreciation write off)?