Lease vs Buy

[blunomore]

Good people,

For those of you who have done both, would you recommend BUYING or LEASING a multi-functional office automation machine (copy/fax/scan/print) and why?

PLEASE NOTE this is for a small business.

Thanks

 

[HavocXphere]

Buy. Depending on total cost and how the business is registered tax wise, you can probably write off the whole amount in the first year. afaik limit for that is about 7k atm but not sure.

 

[Celine]

a friend of mine leased some computer equipment. 2 computers, (keyboards, monitors and a printer/fax/copier) at the end of the lease it worked out she paid R82000 for the period in question. the computers and printer are obsolete and do not belong to her and must be returned to whoever she leased them from. you buy the same equipment and she will probably have paid in the region of R15000 for the entire lot and it would have been hers.

with regards to writing off for tax purposes, computer equipment is written off over a period of 3 years, 33.3% per year. any software purchased is written off in the year it is purchased provided it doesn't exceed a certain amount and it is used for business purposes. i will have to check this up as i don't use this often.

 

[blunomore]

Thanks