LEASE PURCHASE PAYMENTS-Signtronix
Signtronix Signs - By the time an asset was paid/adjusted/and depreciated, 75% of that asset was paid by what normally was paid in income taxes over 3 to 10 years. Section 179 of the current Tax Code states that a “Fair Market Value” lease can be capitalized on the balance sheet as a “Fixed Asset,” namely, “Sign.”
LEASE PURCHASE PAYMENTS are treated as a “Liability,” similar to a mortgage payment - which also remains on the balance sheet (as opposed to the income statement). Only the monthly payment goes on the income statement as an “Expense.”