Leased Equipment-OTR Tractors

[Redridertu]

What is the name of your state?UT
Leased equipment taken as an expense. Lease bought out this year. Do you show the buyout amount as expense and fair market value as asset amount?This is for S Corp.

 

[Snipes5]

The buyout is an expense, however, the value of the asset is what you paid to acquire it, not its FMV. If the asset has more than one year of value left, it should be depreciated, using its cost as basis.

Snipes

 

[Redridertu]

Leased Equipment-OTR Tractor

UTAH
Can you explain -value of asset is what you paid to aquire?
Are you saying that the buyout amount is the paid amount or the total amount paid on lease.

 

[Snipes5]

Somewhere in the paperwork you received when you bought it should be a cost.

My guess is that part of each lease payment will constitute cost, as well as part of the buyout amount.

Search your paperwork, and if that doesn't help, contact the dealer or whomever you purchased it from. They should have a retail value assigned to it.

Snipes