We’ve talked before about the benefits copier leasing can bring to your business. But did you know leasing can also be a smart tax move?
As they approach the end of another year, thoughts for many business owners turn to taxes. More specifically, they begin to think about how to reduce their tax burden!
The tax implications for leasing business equipment are different from when you outright purchase a machine like a copier or printer. Under a typical lease, as long as you use the leased machine at your place of business, you’re generally entitled to deduct the lease payments on your tax return.
IRS tax treatment of copier leasing
The greatest benefit to copier leasing? You get to retain your cash. The IRS allows you to expense your copier or multifunction printer as a part of doing business, so your capital is freed up for investment back into the business.
And since a lease often offers 100% financing, you don’t need to tap into your savings like you would for a financed purchase. Plus, leases are easy to set up when compared to qualifying for a bank loan to buy new equipment, and they require less paperwork.
Leased equipment also isn’t depreciated as an asset on your tax return. Instead, it’s a fully-deductible expense that decreases your business’ taxable income from profits.
Other copier leasing tax savings
Aside from federal taxes, copier leasing also helps you save in the form of sales tax. This can be particularly helpful if you need to buy or lease more than one copier. Instead of paying a huge amount of sales tax at the time of purchase, you can defer taxes and keep more of your cash on hand.
Level the playing field
Copier leasing does much more than help reduce your tax burden. It can help you compete by putting the latest technologies within your reach. In fact, we believe there’s no better way to market and grow your business than by leasing your own Konica Minolta Bizhub multifunction copier. And from accounting firms to non-profits and wineries, our customers couldn’t agree more!
Very few small businesses have the necessary, unlimited supply of cash to invest in purchasing equipment. Today’s copier leases are extremely competitive, giving you the option to make manageable, affordable payments and to upgrade when you find the need for more advanced technology.
Learn more about copier leasing
There are tax implications as well as pros and cons to leasing or buying a multifunction printer and our helpful guide can help you decide which is the best choice for you. You may also want to talk to your business accountant or financial adviser before making that final decision.
To learn more about the advantages, tax and otherwise, to leasing your business’ printers and copiers, contact Common Sense Business Solutions today. We look forward to sharing our copier leasing knowledge and expertise!
