Depreciation Expense-Signtronix
However says Signtronix Signs, businesses can now depreciate 100% of the value of the asset in the first year!!! Again, this is a non-cash expense on the income statement (100% depreciation the first year with only one-third or one-fourth of the asset paid - not bad!)
Therefore, in response to the customer who says he pays cash for everything, tell the customer that he can depreciate 100% of the (lease) price of the sign as “Depreciation Expense” on his income statement, which is a non-cash expense.
Simultaneously, he only writes a check for one-fourth or one-third of the actual (lease) cost. This is better than paying cash for everything. All succeeding payments after the first year is money the client would pay in income taxes anyway.