15 Jun Comparing Taxes When You Lease and Buy Office Equipment
Every business owner has to decide between buying and leasing office equipment. If you are having trouble deciding whether to buy or to lease, your taxes could help you choose. Keep reading to learn about the difference in taxes when you lease and when you buy office equipment:
Interest Deductions
If you finance your office equipment, you can take your interest off of your taxes as a business expense. You could also choose to slowly depreciate the asset so it becomes a yearly expense that allows you to deduct the value to lower your taxes. Even though the interest adds to the total cost of the equipment, it helps you find some major tax breaks that can greatly benefit your business.
Lease Payments
You can also deduct the cost of your lease payments from your taxes. If you lease equipment, you can deduct almost the entire amount of your payments. Although leasing might seem more affordable in the short run, it does not offer the same tax benefits as buying the equipment outright. If you do not have the money to pay for all of the office equipment up front, though, it might behoove you to lease the equipment instead.
Claiming Options
You also have the option to expense items like computers or machines instead of depreciating them. This method allows you to take the whole write-off up front and deduct the cost of your interest as you pay it. If you are very concerned about your business taxes, it might be a better option to buy the equipment than to lease it.
At Arizona Business Equipment, we make it easy to find the office equipment that you need to ensure that your workplace is fully functional. Whether you want to buy or lease the equipment, we can help you stock your office to your needs. To learn more about our products and services, visit us online or call (520) 888-2679.