An equipment lease is a tax lease on equipment a business may use. The lessor, like Trans Lease, owns the equipment, while the lessee is able to use the asset in exchange for lease payments. The lessor retains full ownership of the equipment, and along with that, all of the risks of ownership. The lessee can claim the entire amount of the lease rental as a tax deduction.
Equipment leases allow businesses of all sizes to obtain the important equipment they need at an affordable price. These businesses will also not be stuck owning an expensive piece of equipment that quickly becomes obsolete, as they have no further obligations after they fulfill the lease term.
If the equipment is still needed at the end of the lease term, a lease renewal may be negotiated.
Benefits of Equipment Leases for Commercial Vehicles
An equipment lease is a contract where a lessor owns a piece of equipment, such as a commercial truck or heavy machinery, and a lessee may use that equipment in exchange for regular payments. The equipment is still owned by the lessor, but the lessee may claim their rental payments for tax purposes.
Equipment leases can be issued for a range of assets in nearly every industry. Equipment may include factory machinery, trucks, commercial vehicles, specialized equipment, and more. Equipment leases allow businesses to have important assets at their disposal, like commercial vehicles, without the expense and difficulty of purchasing the equipment outright.
Equipment leases are a great way to obtain assets without a large upfront investment, since typically no down payment is required. The monthly lease payments may be claimed on taxes. Equipment leases also protect the lessees from the risks of ownership and allows them to upgrade their equipment regularly, rather than being stuck with a purchased asset.