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COMMENT ON POST AS SOON AS POSSBLE-THANKS There are several advantages of leasing rather than...

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Accounting

COMMENT ON POST AS SOON AS POSSBLE-THANKS

There are several advantages of leasing rather than purchasing property. Depending on the amount of cash on hand it may be beneficial to make equal monthly lease payments, rather than a large upfront purchase payment. Also, if you have a shorter term lease you do not have to worry about being stuck with obsolete property/equipment. You do not have to worry about the costs of trying to find someone to buy your old property. At the end of the lease simply lease an updated version of what you need. Leases also provide tax benefits because the entire payments are expensed, reducing taxable income.

A disadvantage is that you are making payments for something that you do not own at the end of the agreement. Also, if you were planning on renewing the lease of a building, the owner may choose not to continue to lease the property. Which can be very difficult if your business is well established in that area.

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