Buying vs renting construction equipment: what you need to know
Construction equipment can be quite expensive and maintaining it costs even more. How about renting then? What are the pros and the cons? Would renting be a better option for your company or should you simply buy new equipment? These are some of the factors you should look into before making your decision.Consider Tax Incentives/Capital ExpendituresFirstly, you need to evaluate your bookkeeping and overall financial factors before you make a decision. On one hand, expenses that come with renting equipment can be billed back to the customer. They can also be annually deducted as expense of your business. On the other hand, purchasing equipment is a capital expense and it is automatically treated as one when it comes to paying taxes. In addition to that, you’re not able to deduct...