|
| Skipper, when I leased my first tractor in '87 I was expanding acreage & updating quite a bit of older equipment. At the the time the limit on Schedule 179 was $25,000 an one trade was ore than that. I didn't want to depreciate the tractor out over 7 years as my intentions were to trade it in 3-4 years. After discussing a lease with my lawyer & accountant it just made sense to us in our situation.
Now with the Scd 179 over $100,000, for '06 I believe it was around $105,000, it just didn't make sense to lease it as it once did. We trade equipment on a regular schedule & prefer to Scd. 179 as much as possible rather than depriciate it. If our situation or the tax laws were to change I wouldn't be afraid to lease again.
I am not sure as to why people state the only advantage to leaseing is the balance sheet. On my financial statement a lease is reported as an "Assest" & as an "Expense" showing market value, paymens & remaing balance similiar to a piece of owned equipment, only in it's own bracket.
Lorenk post probably covers the tax aspects much better than I. That was why I stated before leasing an item a person needs to discuss it with a qualified person.
Edited by boog 3/18/2007 10:48
| |
|
New or used MFD/ Lease or Buy
