To continue the argument of Use v Ownership and why Leasing benefits the small business owner, I have gotten down to some raw numbers based on our last week’s example. We have a 50k piece of equipment financed through a loan v leased for 36 months. The other assumptions are use of MACRS accelerated depreciation and a sales tax of 7%. This tells the story better than I can but please feel free to email me @ Stu@southernlendingsolutions.com with any questions or for the more detailed chart outlining this study.
Southern Lending Solutions
| Loan | Lease | |
| Equipment Value | 50000 | 50000 |
| Down Payment | 5000 | 3000 |
| Sales Tax 7% | 3150 | 0 |
| Amt Financed | 48150 | 47000 |
| Rate | 8% | 11% |
| Monthly Payment | 1629 | 1665 |
| Depreciation 3 Yrs | 35500 | 0 |
| Using MACRS | ||
| Tax Deductibility | 35500 | 59940
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