Requiring no down payment and often no cash outlay at all, a business lease frees up business capital for other purposes. The payment is also completely tax deductible. From cars to truck fleets, leasing offers improved cash management to all businesses. In addition leasing does not affect existing lines of credit. By paying for the vehicle as it is used, the well managed business often has a lower car payment, which can be converted into a larger car.
Individuals receive the full benefit of leasing's no down payment and lower cost.
Even when the vehicle is not used for business, leasing provides similar tax benefits to ownership, while allowing for easy disposal of the vehicle, lower payments and a more expensive vehicle. The portion of the vehicle used for business will see significant tax benefits in a simple deduction. Inc. All Rights Reserved.