Operating Lease

Cash Flow and Taxes

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. Operating leases typically have fair-market-value buyouts in which ownership is negotiated at the end of the lease.
   
5. You are able to write off 100% of each monthly lease payment.