Should You Buy Or Lease Your Equipment?
Leasing operating equipment, such as computers, vehicles, and machinery, often makes more sense than buying. However, while favorable leases are often good bets, unfavorable ones can easily sink an emerging venture. While doing your legal homework can help prevent bad deals, it's always a good idea to have a lawyer look over a lease before signing it. Investigate the Buying vs. Leasing issue.
Is your lease likely to be deemed a purchase for tax purposes by the IRS? If so, leasing may not give you a tax advantage. If not, you may be able to deduct payments on the leased equipment. Here are some IRS Guidelines.
Is it easier to find someone willing to lease the equipment, or someone willing to extend the necessary credit and financing to purchase the equipment? Equipment Finance is worth the research.