| Business firms looking for a copier machine to | | | | provided the option for purchasing the equipment in its |
| enhance the value of services they provide should | | | | FMV (Fair Market Value) at the end of the leasing |
| consider photocopier leasing. Being an economical | | | | period. During the lease period though, the lessee does |
| solution to buying a new expensive copier, leasing is | | | | not own the equipment and does not record it on the |
| suited to every business firm be it a fortune 500 | | | | balance sheet as an asset or a long term liability. The |
| company or a start-up firm. The main advantages are | | | | equipment leased is treated as an operating expense |
| obviously the capital cost savings of the company, | | | | in the off-balance sheet and is hence 100% tax |
| easier upgrading when new copiers arrive in the | | | | deductible, up to a specified limit. |
| market, and the tax relief benefits. | | | | By leasing costly equipments such as photocopiers |
| The Internal Revenue Service (IRS), which is the US | | | | whose tech specs keep updating rapidly, your |
| government agency responsible for tax collection and | | | | company is saving on capital costs, maintenance, |
| tax law enforcement, does not consider equipment | | | | upgrading and taxes to a large extent, which |
| operating on lease to be coming under direct tax but | | | | contributes significantly to the stability and efficient |
| as a tax-deductible overhead expense. The payment | | | | performance of the company. |
| you are giving for lease need not be included in your | | | | The recently modified IRS Section 179 allows business |
| corporate income and hence the lease equipment is | | | | firms to write off a sum up to $108,000 for equipments |
| not being taxed. | | | | which are leased. It will be a good idea for companies |
| The tax relief benefits from IRS are only applicable if | | | | to consult their tax advisor to check out the various |
| the end-user has an agreement with the firm, lending | | | | tax relief benefits of leasing photocopier and other |
| equipment such as a copier. The lessee is usually | | | | equipment before striking the deal. |
