Small Business Taxes [When to use Capital Leases vs. Operating Leases]

As a business owner, you might how you will include leasing an office space, or a leased vehicle on your tax return.

A capital lease is treated as an asset on a company’s balance sheet, while an operating lease is an expense that remains off the balance sheet. Think of a capital lease as more like owning a piece of property, and think of an operating lease as more like renting a property.

REH CPA explains in this video what to do when you need to included Leases on your tax return.

Watch this video to learn more!

Visit our website: https://www.rehcpas.com

Ray Halstead and Andrew McMillan are managing partners at REH CPAs in Mooresville, NC. They focus on helping small business owners with their bookkeeping, accounting, taxes, and ultimately allowing them to stay out of their books and in their business.

If you want to speak with someone about your small business taxes, give REH CPAs a call at (704) 662-8249.