1. Missed the live Ask the Expert event?
    Catch up on the conversation with Ken Hutcheson, President of U.S. Lawns in the Franchising forum plus sign up to receive a FREE eBook on how to grow your landscape business.

    Dismiss Notice

Buy or Lease an EXMARK LAZER HP?

Discussion in 'Lawn Mowing' started by ETturfman, Mar 23, 2001.

  1. ETturfman

    ETturfman LawnSite Member
    Messages: 25

    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?
  2. Mid Rivers

    Mid Rivers LawnSite Member
    Messages: 209

    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.

  3. John DiMartino

    John DiMartino LawnSite Silver Member
    Messages: 2,555

    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.
  4. joshua

    joshua LawnSite Bronze Member
    Messages: 1,226

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

    Roger LawnSite Fanatic
    Messages: 5,929

    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.

Share This Page