Financial Benefits of Leasing
For rural businesses, leasing may be the right tool for improving your bottom line:
Lower your taxes: With the right kind of lease, you can simply deduct your lease payment as an operating expense and lower the amount you owe.
Reduce Costs: With a lease, you only pay for the portion of the equipment you use during your lease term.
Save Money: No down payment required.
Maximize Tax Benefits: Lease payments may be fully tax deductible under a True Lease, lowering taxable income. A Conditional Sale lease option allows you to take advantage of deductions available as tax owner of the equipment.
Cash Flow: Customize payment schedules to your cash flow. They can even be set up to coincide with your harvest season.
Avoid End-of-year Tax Penalties: You may not be able to take the full year’s depreciation when you purchase equipment in the fourth quarter. With leasing, you can deduct your entire lease payment for the tax year no matter when you initiated the lease.
Minimize Maintenance Costs: Leasing allows you to easily replace equipment so you spend less to maintain older models.
Meet Your Fiscal Goals: The right lease structure can make a difference to your bottom line, whether your organization is required to meet financial covenants or you want to hold specific credit ratios.
Secure Future Financing: When you establish a lease line with us, you have preapproved financing that makes it even easier to get new equipment in the future.
Choose the Best Lease Option: Tax codes and decisions can be complex. You should follow IRS tax guidelines and consult with your accountant about the best financing alternative to lower your taxes.
Be sure to consult an accountant about which type of lease is right for you.