Learning the difference between buying vs. leasing property
Some people prefer to lease a car or truck or home, while others want to own one.
You will likely face the same question either way, whether you buy, rent, or lease your location, equipment, and more.
Courtney Kincaid, president and CEO of the Indiana CPA Society has some thoughts.
People are still trying to find out what their needs are as they start new businesses that have popped up post-pandemic and commercial real estate and also the leasing or buying of equipment, leases, and purchases as well as how they are to be treated differently from a tax perspective.
There are many things to take into consideration when people are looking at property. For example, something that’s really good to think about is what are the short-term benefits and what are the long-term benefits because that will depend on different ways that you will make your decision.
When you think about leases, it might be financially beneficial in the short term, but when you think about tax implications or depreciation, purchasing things in the long term, you might have a better long-term outlook.
The tax implications for a property are not just commercial real estate. A CPA is a really good partner and helps you understand ancillary costs related to that property that might also qualify for a deduction, as well as saying what would qualify.