ss_blog_claim=bd50edc517cf0b7549fe6b5f63b6b5f8 The SLS Business Finance Blog: More on Use v Ownership

Tuesday, December 9, 2008

More on Use v Ownership

To continue the argument of Use v Ownership and why Leasing benefits the small business owner, I have gotten down to some raw numbers based on yesterday's example. We have a 50k piece of equipment financed through a loan v leased for 36 months. The other assumptions are use of MACRS accelerated depreciation and a sales tax of 7%. This tells the story better than I can but please feel free to email me @ with any questions or for the more detailed chart outlining this study.

Loan Lease
Equipment Value 50000 50000
Down Payment 5000 3000
Sales Tax 7% 3150 0
Amt Financed 48150 47000
Rate 8% 11%
Monthly Payment 1629 1665

Depreciation 3 Yrs 35500 0

Tax Deductibility 35500 59940

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