In the first year with a lease-Signtronix
Most CPAs are of the opinion says Signtronix, that a business should lease/purchase “income-producing property” and pay cash for things that simply cost a business money that doesn’t generate any income. When that is done, the business can depreciate 100% immediately while paying $100 per month, for example, for three or four years.
The “time value of money” means that a business receives a 100% immediate depreciation expense (a non-cash expense) for a small monthly payment that will be paid with “cheaper dollars” at a future date!!! And, all those “future dollars” can be used to buy “today’s” inventory . . . That converts to cash “today”.
Again, the current Tax Code literally pays for 75% of the sign . . . In the first year with a lease/purchase using today’s Tax Code. I realize that accounting articles are a turn-off for most non-accountant types. But, most business people know that the price they pay for an accountant should be paid by the money their accountant saves them every year.