How Leasing Works

Leasing, as a way of acquiring the use of equipment, cuts across goods-producing and service-producing industries in the U.S. economy. Many types of equipment are leased throughout the U.S., including office equipment, IT equipment, manufacturing machinery, transportation equipment and medical equipment. Many sectors of the U.S. economy lease equipment, including construction, manufacturing, services and wholesale/retail trade. The tax benefit, which can allow the lease payments to be expensed (as opposed to a capital asset purchase, which must be depreciated), is attractive to many businesses.