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Originally Posted by Dr Chill  As I suspected. You are paying for the lease with pre-tax money. This effectively reduces the cost of your lease by whatever % your tax rate is. This is clearly superior to ownership by the business with write-off of depreciation and usage costs (unless it is a truck or large SUV). |
You are correct. We used to purchase trucks/suv's under the business but recently the guidelines were changed where a much smaller percentage could be written off. So than we went over to leasing which is a much better option. A perk of being a business owner.