Business Docx: Business Matters
EQUIPMENT LEASEAn equipment lease can allow your business clients to pay reasonable business expenses into another entity that owns equipment used in the ongoing operations of the business. This is often seen in dental or medical practices, or in manufacturing and farming where highly valued, depreciating assets are used on an ongoing basis. Clients who own those assets used by their small businesses may wish to transfer the equipment into a trust for the benefit of other beneficiaries, and then pay reasonable rents into the trust to fund future trust benefits and receive the use of the equipment owned by the trust. These are fairly advanced strategies, so proper documentation is essential.