While lower up-front cash outflow is definitely a benefit, one of the most-talked about reasons for leasing farm equipment or structures is the tax advantage. Since payments on true tax leases are 100 percent tax deductible, a lease is a good option if you need to reduce your tax liabilities. Because you are able to deduct your lease payments, leasing in many cases can reduce your tax liability by permitting a faster write off of expenses than can be achieved through depreciation. |
