Would you believe 100% write off of your
mobile medical-dental, or veterinary
clinic over the term of the lease?
Because of the sizable cash outlay
involved in the purchase of major
equipment many major businesses lease in
order to conserve capital. Most Airlines
lease their fleets of aircraft. Businesses
for many years have taken advantage of the
TAX savings leasing provides. Paying cash
for a major piece of equipment allows only
a depreciation factor of 80% as a write
off tax benefit...
Leasing
which is simply dollars-per-month financing
helps major equipment users to fit a
monthly payment into their budget. Because
payments are fixed, users can continue to
intelligently budget purchases into the
future.
Just as
businesses have done for years, a lessee if
the lease is structured properly can
usually deduct their monthly lease payment
as an operating expense. This clearly
reduces the net cost of the lease. Since
the monthly lease payment is a small
portion of the total cost leasing allows
you to use a greater amount of equipment
for your budgeted dollars....
Acquiring a
mobile clinic through conventional bank
business lines of credit reduces the amount
of capital available for future business
contingencies. When mobile clinics are
leased, a business has in effect
established an
additional
line of credit.
Purchase or renewal option:
Most lease arrangements allow the lessee
the options at lease end to either purchase
at a stated amount or at the Fair Market
Value or to renew the lease at a reduced
monthly payment. The lease structure
determines which of the options are
available. You may also choose to return
the mobile clinic with no further
obligation to continue the lease. You may
want to up grade your mobile clinic and
utilize the equity in the equipment as a
down payment on the purchase of a new
mobile clinic.
In 2005
business can depreciate up to approximately
$105,000 of equipment used for business
under Section 179 Deductions. To qualify
under Section 179 Deductions a lease must
be structured as a Capital Lease. For
additional details check with a financial
adviser or see Chapter 2 of IRS Publication
946 “How to Depreciate” It is always best
to consult with your Tax Accountant before
entering into an acquisition of major
equipment.
Your
initial outlay of money is the first months
lease payment not the full value of the
mobile clinic.
Leasing does not cost it pays.
