Should You Choose Cosmetic Laser Rental?
When it comes to cosmetic laser rental, you definitely shouldn't jump into things without examining your options. After all, you also have the option of just buying a cosmetic laser. Which option to choose depends on your end goal.
Consider Your Business Capital
One thing that may influence your decision on whether to rent or buy a cosmetic laser is your business capital. If your business has a lot of spare capital then you could potentially buy your own cosmetic laser. On the other hand, if you don't want to tie up a large chunk of your capital, rental might make more sense. You should base that decision not only on your current capital, but on the amount of business you expect in the immediate future.
Think About the Impact on Your Taxes:
Let's face it, we all want to save as much as possible on our taxes. When we hear the words “tax refund,” we immediately start thinking about how much of a refund we can get exactly. For business owners, tax refunds are even more important. Much like when you lease a car, if you lease a cosmetic laser you can get a tax deduction. Generally, it will be 100% deductible as a business expense.
The Trouble with Financing
You might also be considering financing your cosmetic laser, but that can be problematic in a long-term sort of way. For example, do you think that you will need to check with your bank about getting a loan anytime soon? If so, you might want to think twice about financing because the payments can have an impact on your loan approval. Also, financing can be difficult to get in the first place.
Leasing Frees Up Capital
As mentioned above, you need to base part of your decision about buying or leasing laser equipment on your existing capital. But you also need to realizing that leasing can allow you to free up that capital for other things, such as all of the inevitable changes and additions that most businesses need to make in order to keep up to date and attractive to clients.
Double Check Your Tax Benefits:
Each year the tax code, specifically 179 of it, changes slightly. It all depends on what determination Congress makes about that year's taxes. Despite the fact that leasing is tax deductible, outright purchasing your laser equipment could be better for you, depending on the year. Read More.
Under section 179 of the tax code, you may be able to deduct up to $500,000 in business purchases for the year. Assume for a moment that your taxable income for the year was $600,000. Well, using the section 179 rule, you can reduce that to $100,000. That's quite a reduction. But the rule doesn't exist every year. So, be sure to have a chat with your accountant. That's the only way to decide whether leasing, renting, or buying cosmetic lasers is the best choice to suit all of your business needs. Just remember to keep your own end goals and the needs of your customers in mind at all times, rather than making a hasty choice.