Cosmetic Laser Rental
The age old question is should I lease or should I buy? We tend to buy houses but at the same time we lease cars. There are many factors that bring us to this decision. A main reason is that the mortgage interest I pay on my home is tax deductible. There are few things in life we enjoy more than saving money in taxes.
We generally lease our cars, why? If you are a business owner, and most people reading this are either business owners or soon to be business owners, you know that the lease payments on your car are 100% tax deductible if used for business purposes.
Should you lease or rent your aesthetic laser or IPL equipment? The answer of course is, it depends. Sorry, but it’s true. It depends on many factors. In the following paragraphs we will review the main points in making a decision on renting and leasing cosmetic laser and medical equipment. Read More.
When you lease, the payments are 100% tax deductible. If you finance the medical laser or IPL machine, the payments are a burden anytime you go to the bank for a loan – for example if you are going to buy the building your practice is in. In the post sub-prime world, it’s hard to get financing, it may be better for your entire financial picture to lease.
Another point is leasing allows you more cash to grow your medical office or spa. Perhaps to purchase other equipment or services that will help you generate addition income. If you can generate more with the money then why lock it up in purchasing the aesthetic laser machine in cash- it doesn’t make sense financially.
However, not to confuse you, but depending on the mood in Washington and Congress – you should check the limit on section 179 of the tax code in any given year. Section 179 will allow you to deduct the full amount of the cosmetic laser equipment and any other equipment you purchase for your business up to $500,000 in a given year, all upfront.
So, if you have $600,000 in taxable income, and you take full advantage of the rule, you reduce your income to $100,000 and pay taxes at that rate. Be aware that Congress passes the rule and then it lapses because it’s not permanent- but definitely check with your accountant if you plan on making a large purchase in the near future- or are trying to reduce your taxable income. As mentioned earlier, there are few things in life that are better than saving money in taxes.
Renting or leasing cosmetic laser equipment can be very beneficial depending on your situation. Just like every decision that can be very beneficial, it is very important that you research it and talk to experts. At the end of the day there is only one important point, what outcome will help you and your business grow and succeed. You need to look at the whole picture and make the decision based that helps achieve your goal – to have a thriving cosmetic, aesthetic and medical practice that you enjoy managing.
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