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 @ Stu@southernlendingsolutions.com 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
Using MACRS
Tax Deductibility	35500	59940

Stu
Southern Lending Solutions