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<blockquote data-quote="Brian jojade" data-source="post: 108240" data-attributes="member: 211">Re: Equipment Leasing vs. BuyingYou have to look at all aspects of the lease to see if it&#039;s going to be worth it.&nbsp; In my experience, there are only a select few instances in a small business where a lease is actually a good idea.Advantages of leasing:1. Lower up front cost for gear.&nbsp; This can roughly be accomplished with a loan, but generally with leasing you can get larger amounts than you would with just an open loan.2. Gear ownership is not yours, therefore no property tax is counted on leased gear.&nbsp; Depending on your location, this could be significant.3. At the end of the lease, you don&#039;t have to worry about disposing of the gear.Disadvantages of a lease:1. Generally, with electronics a 3-5 year lease is going to be a payout of the total value of the gear. Depending on the lease, you may be able to buy it out, or you may have to return it.&nbsp; If you buy it out, you can then resell the product.&nbsp; However, the amount you sell it for over the after lease purchase price is now considered profit and would be taxed as such.2. Leased gear does NOT mean unlimited warranty.&nbsp; If it breaks, you still have to pay for the repairs.3. You can only list the expense of the lease for the current year on your taxes.&nbsp; With a purchase, you can section 179 the entire purchase.&nbsp; This is only a minor advantage though, as the net result is going to end up the same.&nbsp; It may help in one year and hurt the next to expense everything at once.</blockquote>

[QUOTE="Brian jojade, post: 108240, member: 211"] Re: Equipment Leasing vs. Buying You have to look at all aspects of the lease to see if it's going to be worth it. In my experience, there are only a select few instances in a small business where a lease is actually a good idea. Advantages of leasing: 1. Lower up front cost for gear. This can roughly be accomplished with a loan, but generally with leasing you can get larger amounts than you would with just an open loan. 2. Gear ownership is not yours, therefore no property tax is counted on leased gear. Depending on your location, this could be significant. 3. At the end of the lease, you don't have to worry about disposing of the gear. Disadvantages of a lease: 1. Generally, with electronics a 3-5 year lease is going to be a payout of the total value of the gear. Depending on the lease, you may be able to buy it out, or you may have to return it. If you buy it out, you can then resell the product. However, the amount you sell it for over the after lease purchase price is now considered profit and would be taxed as such. 2. Leased gear does NOT mean unlimited warranty. If it breaks, you still have to pay for the repairs. 3. You can only list the expense of the lease for the current year on your taxes. With a purchase, you can section 179 the entire purchase. This is only a minor advantage though, as the net result is going to end up the same. It may help in one year and hurt the next to expense everything at once. [/QUOTE]

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