Developing a business without owning or operating a car is very difficult. Over time, you have to either purchase a vehicle or rent it. It is no secret that entrepreneurs, especially at the initial stage of their activity, experience an acute shortage of working capital. Financial resources are not always enough to acquire the necessary equipment. Given these circumstances, leasing operations can provide very substantial support to any enterprise. If we talk about the mechanism that lies behind this definition, then leasing can be called a long-term lease.
First of all, it should be noted that leasing operations are carried out not only with vehicles, but with equipment, and with real estate. This procedure provides for the participation of at least two parties - the lessor and the lessee. In recent years, commercial banks have begun to lease. Insurance companies are necessarily involved in the process. Accounting for leasing operations is maintained by each party independently. The lessee or the one who receives the vehicle for rent does not register it. In this case, property tax is not paid, and rental costs are counted as expenses.
This fact already clearly demonstrates that it is beneficial for an entrepreneur to take a car on lease. If he purchased it, then, according to the current rules, he would immediately begin to pay property tax. While leasing operations allow you to have at your disposal transport and pay for use gradually. In its form, payment of leasing is no different from payment of rent. To present the whole mechanism in more detail, two words must be said about the leasing company. Most often, it is a subsidiary of a commercial bank or is established by a group of banks. Its main task is to
find customers and work with them.
When a client appears who wants to buy a car, leasing operations begin. The first thing a leasing company does is get a loan from a bank. This money is used to purchase a vehicle that the client has chosen. Of course, the car must be registered with the traffic police. It is important to note here that the leasing company is recorded in the "owner" column of the vehicle passport. Once again, attention must be paid - the car belongs to the lessor. He passes it to the client. The lessee uses the car and pays the leasing company monthly for this.
The value of these payments is calculated in advance and reflected in the contract. In this regard, it should be said that the taxation of leasing operations is carried out within the framework of the current accounting system. The maximum tax burden is borne by the leasing company. As for the client, it is beneficial for him to purchase a car, as they say, from all sides. He does not pay property tax because the car is on the balance sheet of a leasing company. Regular lease payments are expensed, and thereby reduce the tax base of income tax. And one more thing: at the end of the leasing term, the client has the opportunity to buy the car into the property at a residual value.