Quote:
Originally Posted by Schmed
Unless my accounting research is wrong, the lease is a complete write-off through my company. Purchase has to be depreciated at a less-than-ideal rate. Ends up being less expensive to lease given the tax consequences.
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Leases come in two general forms:
- Operating leases
- Capital leases
Depending on the terms of the lease, your company may have to account for it as a capital lease and accordingly depreciate the leased property.
Most short term leases probably won't meet the criteria for being classified as capital leases, but it is still possible.