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lease vs buy

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › lease vs buy

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • April 5, 2023 at 1:48 pm #682240
    TAUQEER199625
    Participant
    • Topics: 14
    • Replies: 18
    • ☆

    sir i have been practicing lease vs buy questions and i could not understand why we ignore tax saving on rentals, maintainance cost, capital allowance in year 1?

    April 5, 2023 at 3:02 pm #682244
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    When we record the tax savings depends on whether the question says that tax is payable immediately or (more commonly) is payable one year later.

    Have you watched my free lectures on lease and buy (and on investment appraisal with tax)?

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