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Options

Leasing Options

     
  The two options of a lease are $1.00, also known as a Capital Lease, or an Operating Lease.  
  The Capital Lease would begin with first or first and last monthly payment; run through the desired term, at the end of the term you would purchase the equipment for $1.00. As your accountant will tell you, you’ll have to depreciate this one the same way you would a bank loan, or any other sales contract.  
  The Operating Lease will start the same way with first or first and last monthly payment, run through the desired term, at the end of the term you have the option to purchase the equipment for a residual, normally 10, 15, or 20% of the original price. Or, you can turn the equipment back in. You are able to write the payments off as a rental payment, if your accountant chooses. This way gives you the tax savings of a rental payment.  
  These are an overview of different leasing options. If you have would like to discuss more options please contact our office!  

 

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