Lease payment question.

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A lease is designed such that you pay only for the use of the asset for the period of time you have it, which is typically less than a person would be looking at if they were going to finance a purchase with the intent of keeping the asset. So, a purchase structured as a lease will be more expensive and the only advantage for you is if there is no down payment required. But if you have the down payment and can get the financing for purchase, that method will be cheaper if your intent is to keep the asset.

 

The same way it is with leasing furniture from rent a center or Aaron's, if you fulfill your entire lease agreement based on the timeframe they setup in the contract, you'll pay almost double over what the original cost was. You even get to turn the equipment back in and get a whole new set, just like you can with a truck

 

Buy a good used one and you won't eat the depreciation.

 

Pumpkin have some for sale but Lord they need a lot of help

 

Another difference between lease and outright purchase is entire cost of lease is tax deductible. A truck priced like you are talking about had all the depreciation written off already.

 

No it hasn't. You can write off the depreciation regardless of what it cost. You paid money for it, it's a business expense which is a tax deduction period.

 

bs,you can still depreciate the truck you bought it!Anybody who tries to say that a lease purshase is better then an outright buy is clueless!

 

I beg to differ. After the value of an asset has been 100% depreciated there is no more allowed.

 

Perhaps you can provide a link to the I.R.S. that confirms your point? I'm pretty sure used equipment purchase qualifies for depreciation. I'm confident you can even use section 179 too.

The way I understand it, you can't use the "bonus depreciation" option on used equipment.