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Discussion in 'Lawn Mowing' started by Jerry and Sons, Mar 27, 2005.
Anybody leaseing there mowers instead of purchasing? What are the benefits that you have found.
Didn't know leasing was availible.
Either did i, but i was speaking with a landscaper on another site who stated that he leased his equipment, but was very vague about info. Not sure if he was pulling my leg.
Could you emagine the damage that would be done to leased equipment? It would get beat up quick.
My thoughts exactly but what about the poor sap that buys the mower after it was used commercialy by someone that may not care about preventative maintenance.
I am not sure if the rules are the same in U.S. as they are in Canada but here is a quick bit of info...
If you lease the equipment you can write off the entire monthly payment on your taxes thus if you lease it over three years you can then write it off completely over three years. A lease also usually has a residual value of say 10% of the original purchase price.(buyout)
If you Buy it or Finance it is then a conditional sale agreement (no residual value) and then at tax time you then have to depreciate it down to write it off.
In Canada your write off on capital equipment is usually 20% in the first year and the 10% of the declining balance which in short gives a slower and smaller write off.
So from that it may sound like leasing is better, however the problem is (in Canada anyway) they are not required to disclose the interest rate and there are many games played with the numbers and you can end up getting a bit of a reaming if you are not paying attention. So If you go to lease get your accountant to run the #s before you sign.
If anyone has any correction ( US tax Laws ) feel free
I leased with a buyout of 10 percent at the end, worked great for me. You can write off each months lease payment as you go. If you buy, you can use immediate depreciation for the full amount the year purchased here in the US, which can really be a whopping write off. Sometimes Lease rates are cheaper, you just have to look at the whole picture, whatever works best for ya
What type of equipment, and who did you lease through?
walker mower thru a local bank that started a leasing program, Centura Bank
one more thing, they usually will LIST with the local property taxes, so if you get away without "listing" your stuff, then you will save more by outright buying.