Leasing business equipment – from cars and computers to furniture – may seem poor value for money, but for businesses without the funds to invest in equipment, leasing is a good way to forget depreciation calculations because the entire lease amount is deducted for tax purposes.
However, if you plan to make a long-term investment in capital items, leasing makes less sense than other types of acquisition, such as borrowing to invest, as loan interest is tax deductible and your business then owns the asset from the moment of purchase.
