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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.

    Thanks
     
  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.
     

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