Tax Benefits

When properly structured, lease payments may be a tax deductible business expense paid from pre-tax earnings rather than after tax profits.

And leasing may also protect you from "technology obsolescence"!

When you acquire equipment for your business you have 3 choices:
1. Pay cash
2. Get a loan from your bank OR
3. You may lease.

If you pay cash or take out a loan from your bank, you may be required to depreciate your equipment for 5-7 years. If you lease your equipment, the entire lease payment may be tax deductible over the term YOU choose!

And when the lease is over you may simply return the system and acquire new technology, continue to lease it, or buy it.

Balance Sheet Management: In addition to the positive impact that many of our products have on your organization's working capital, we can often help you structure a lease that will qualify for off-balance sheet treatment under FASB 13. This "Operating Lease" structure helps you maintain important balance sheet ratios, as there is not a Balance Sheet effect.

We recommend consulting your tax specialist for more details.