Re: Equipment leasing and taxes


"Sallymae" <opmmp3@xxxxxxxxx> wrote
Another question. If I pay for a machine using a business
credit card, will my monthly credit card payments also be
fully deductible like leasing fees?




Umm.....no. If you BUY the machine, then it doesn't matter how you finance
that purchase (pay cash, take out a loan, pay by credit card), you
capitalize that purchase and depreciate it per the rules in effect at that
time.

Now, here's the good part. If you purchase a machine through loans or
credit cards (which is not much more than a loan with a high interest rate),
even though you haven't yet made a payment (buying in December - first
payment in January) you can fully depreciate (expense) the purchase if you
qualify for taking Section 179.





--
Paul A. Thomas, CPA
Athens, Georgia








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