Rental Expense:  Part VI of a Ten Part Series ” The Top Ten Tax Deductions”

There are two types of rental expenses that businesses can incur: 1)Office Rental and 2)Equipment Rental. The office rental expense tax deduction comes frequently from commercial small-office space rental, but can also be larger companies as they expand and incur the need for additional space. This provides for businesses to determine which locations they think will be the most profitable for them to operate in. They can then locate an office, store front, manufacturing facility where they believe it will be the most advantageous for them. A way small businesses can look like they are bigger is through renting offices in buildings with a common secretary and person to answer the telephone and take messages. This also, somewhat, allows them to choose the size of the office that they feel they will be the best fit for themselves in the short-term or longer-term. Also this with allows them to have a place to operate out of without incurring the cost of purchasing the building. The equipment rental tax deduction can also be for businesses to acquire the needed equipment without having a great deal of their money tied up for a down payment. This allows the business to produce their product and deliver their goods to their clients without using all of their money to purchase equipment.

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