NOW IS THE TIME TO LEASE OR PURCHASE CAPITAL EQUIPMENT

Take advantage of 4th quarter and year end low rates and tax events

The 4th quarter and year end is traditionally the busiest time of the year when it comes to leasing or purchasing capital equipment. This is due to lower rates and tax events. Also, we are approaching the final months of "bonus depreciation" and that will have a major impact on rates in the 4th quarter compared to the beginning of the new year. Right now rates in the first quarter of 2005 are roughly 75 - 100 basis points higher on new equipment than fourth quarter 2004 due to "bonus depreciation" going away. This represents a significant variance one well worth considering. Any one looking at adding capital expenditures either late this year or early next year should consider these rate movements. Also, starting next year Alternative Minimum Tax (AMT) and Mid Quarter Convention are scheduled to return in full force, and are additional tax events affecting a company's tax shelter and profitability.

Many accountants are advising their customers to lease or purchase now for the reasons mentioned above. Please keep this information in mind whether you are purchasing or leasing capital equipment or are in the business of selling it.

This information courtesy of OABA member-Huntington Equipment Finance