what are some of the non-tax related advantages of leasing?
SOme of the non tax advantage of leasing are:
There is flexibility with the asset. Asset can be replaced for
better technology change easily without having to worry about
selling the previous asset.
Obsolence also is therefore overcome easily when one can easily
replace an asset.
The cash outflow in inital year can be saved and used for other
purposes.
Most importantly it provides off balance sheet financing. The
company’s obligation to pay the lease, which is a liability,
doesn’t reflect on the balance sheet.
Get Answers For Free
Most questions answered within 1 hours.