Optimize taxes with leasing?
Agree on increased initial installments instead of a special payment!
In principle, leasing partners finance the full acquisition costs of an asset!
However, in cases of low customer creditworthiness or low residual value of the financed asset, leasing companies may not want to provide full financing. They require a personal contribution from the lessee.
To reduce the financing amount, an initial special payment is usually required in order to decrease the uncovered (so-called blank) risk amount that is not secured by the asset's realizable value.
This is where we can achieve a more advantageous outcome for you as the lessee.
A simple option is to agree on increased initial installments instead of a special payment, which the leasing company accepts as an equivalent substitute.
So what is the advantage?
Special payments (down payments) cannot be fully deducted as an expense in the profit and loss statement immediately. Companies subject to accounting obligations must establish an active deferred item, which is to be dissolved on a straight-line basis over the term as an expense (exception: cash basis accounting).
Increased installments, on the other hand, have the advantage of being deductible as other operating expenses at the time of payment – including for tax purposes.
This allows tax-relevant expenses to be brought forward and claimed immediately, rather than being spread over the term.
There are several other options that can bring additional benefits for you as a lessee.
Feel free to reach out to me!
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