You must consider the tax implications when deciding whether to lease or purchase a copier. The tax code classifies a lease as a business expense while a purchase is treated as a capital outlay. Approximately 40 percent of the copier’s purchase price is deductible the first year. Until your company repays the loan, you can deduct 25 percent of the remaining balance each year. When you pay the balance, the copier belongs to your company.
Although leasing a copy machine is more expensive over time, some Denver area companies choose this option because the monthly expense is 100 percent deductible. Your company’s tax liability may be lower if you lease the machine than if you purchase it for cash. A professional tax consultant can interpret the tax code and evaluate your company’s particular situation. At the end of the lease, you can renew the agreement or return the machine. Whether you choose to rent or lease a copier, contact our team. We can recommend a copy machine that fits within your budget and streamlines your administrative tasks.