RE:Before everyone lose their minds..This "lease" thing, has the BUYER's accountant written all over it lol... hence why Peter said he "hates" the accounting industry in that recent interview.... makes sense now HAHA
Mattboy wrote: I lost money today due to the SP but I refuse to sell. Leasing is actually a great option and will not only drive recurring revenue for the company but cause companies to want more torches.
There are also beneficial tax reasons to lease instead of buy.
By leasing, they can deduct the total lease cost, meaning the cash they paid for use of the item during the tax year in question. This equals the deduction. In buying the capital item, they must lay out the full cash amount, but they can only deduct a portion of the cost each year as it is used. In the long run they will likely end up with more torches and not be forced to put out so much money.