If you want to look at whether the IRS is going to let you deduct the cost of a copier lease, you should know the criteria which determines whether a given transaction is an equipment lease or sale.

One of the great benefits of copier leasing is that you can often deduct the lease payments on your tax returns. Consider the following, because these are the areas that the Internal Revenue Service will look at in determining if a copier lease is actually a lease for tax purposes.

--Often a dollar out equipment lease is more likely to be considered a purchase. The nominal price of $1 at the end of a copier lease is not reflective of the equipment value.

--If the digital copier has no value at the end of the lease.

--If the equipment lease payments are stacked with high costs during an intial, short period of time followed by a relatively small lease payment for the same amount of time.

--If the lessee is required to repair and assume all risk of loss on the equipment.

These are important factors to think about when looking at a copier lease. The tax benefits of a lease can only be used if the IRS believes you have entered into an equipment lease. If you have more questions or are considering leasing a copier, please talk to the Graphic Savings Group.