As a small business, if we purchase 2M of equiptment for our business how much can we expense?
Tax Professional Answers
A better way is to use the lease purchase option of the machinery and write off the lease costs for each year. The Section 179 write off can only be used in the year the machinery is purchased where as the lease purchase allows for write down of the full amount of the lease payments each year.
At the end of the lease you have the right to purchase the equipment or not. If you do purchase the machinery then you can use the Section 179 write down at that time. If you choose not to, you still have had the tax advantage of the lease write off during the term of the lease.
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