FMV – Fair Market Value

• Operating Lease
• True Lease

1. An operating lease is ideal when use, not ownership, of the equipment is important.
2. Operating leases are off-balance-sheet transactions.
3. Cash flow is typically enhanced through lower monthly lease payments.
4. You are able to write off 100% of each monthly lease payment.
5. At lease-end, you chose whether to purchase the assets at fair market value, re-lease the assets are fair market rental, or refresh with new equipment and return your current assets.

$1BO – $1 Purchase Option

• Capital Lease
• Lease-to-Own

1. A capital lease is ideal when long-term ownership of the asset is the goal.
2. Capital leases, like bank loans, are evident on the lessee’s balance sheet.
3. Capital leases take advantage of IRS Section 179 allowing businesses to write off up to $100,000 of equipment in the year it is purchased.
4. At lease-end, the ownership of the assets transfers to lessee for $1.00.