Canadian welders,lease or buy?Tax time

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Any one out lease to own they're new welder?Is it better to buy outright?How many years to depreciate a new welder?I understand leaseing is 100%.Thanks Dave
Reply:i wouldn't lease anything under 6K. I would just buy it outright.
Reply:Annual depreciate limit on new owned equipment is 25% of the value. I believe you can do it as long as you want. I'd be worried about selling it however after it has been depreciated over and over.Talk to your tax specialist or accountant to confirm.Last edited by snoeproe; 11-14-2012 at 11:02 PM.JasonLincoln Idealarc 250 stick/tigThermal Dynamics Cutmaster 52Miller Bobcat 250Torchmate CNC tableThermal Arc Hefty 2Ironworkers Local 720
Reply:annual capital cost allowance varies with the situation. It is different if you are a limited company or a partnership or sole owner. After it is depreciated to a zero value if you sell it the amount you sell it for is classed as income. I believe that lease payments woud be 100% deduction on your tax form. I am not sure about lease to own agreements but the end result is if you own it when you sell it, the amount you sell it for is classed as income. I would talk to your accountant. I closed my business several years ago and the amount of money they originally wanted was insane. I received a letter from the government when I cancelled my gst number. This letter informed me that I had to pay the gst on the value of everything that I had used to generate income; they wanted a list of all tools, equip and buildings and an appraised value. My accountant went to work and got them to relent on the tools and equip but I still had to pay some tax on the shop which is on my property. Be sure you get good advice from a professional. The canadian tax man is a ruthless bastard.
Reply:I was thinking about  a new 200d ,probably the last machine I'll ever buy.To buy outright is lot of $ roughly 17'000,but doesn't seem so bad with a payment.I finally got hold of accountant.All lease payments are 100% as well as buy out in three years.Other wise she said it would be years of depreciation.  Any thing to keep government grubby hands off money is good!100% over three years written sounds much better.Thanks