USTaxAid Services

Generally speaking, a lease means that you don’t own something. It means that you are renting something over a longer period of time.

But the tax treatment for leases can be very different depending on the type of lease you have.

There are regular leases and capital leases. Capital leases are still leases, but they are treated more like loans so that you have an asset that can be depreciated or, in this case, get a Section 179 deduction.

Some examples of capital leases are the $1 Buy-out lease or a 10% Purchase Upon Termination (PUT) lease.

Before you sign a lease, have your CPA take a look at it to see if it qualifies as a Capital Lease. We regularly perform this service for our clients at USTaxAid Services. Plan ahead to pay less tax.

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