“Big” Tax Benefits of Renting Versus Purchasing Heavy Equipment
It is that time of year again pay the taxman! At BigRentz, we want to make sure you get the most bang for your buck when considering the pros and cons of renting versus purchasing heavy equipment for your business.
Tax Benefits of Renting Equipment
Now, more than ever, there are major benefits to renting heavy equipment whether you are a large or small business. When you purchase heavy equipment, it is considered a capital expense. In 2013, you could write off up to $500,000 of new or used equipment purchases or half of any new equipment purchases. No mas! It’s back to the old $25,000 write off of new or used equipment purchases and no more expensing half of new equipment purchases. In a nutshell, unlike purchasing a home, the equipment will not build any equity. Also, ownership comes with additional responsibility: you will need to deal with storage, maintenance, transporting, and repair costs of the equipment.
A “Big” benefit of renting heavy equipment such as forklifts, scissor lifts, and boom lifts is that you can just return the equipment back at any time and are able to deduct 100% of the rental costs as a business expense.
While there are quite a few important tax advantages of heavy equipment renting, always consult with your tax advisor to ensure you get a detailed evaluation of your business and tax situation.
BigRentz Wants to Help You with Your Bottom Line
If you need more simple reasons on why renting is better than owning, check out this cost savings article: https://www.bigrentz.com/blog/why-rent-forklift-boom-lift-scissor-lift
Here at BigRentz, we are always looking out for our customers to ensure they get the best rate in town! Reach out to our rental experts today. So easy! Call (888) 325-5172.