Rob, The primary reason they do that is so that they can write off the entire expense of the lease during the years in which it is incurred rather than having to depreciate the asset over time. In the short run this makes the cash flow situation look better and provides some tax benefit on what they view as a (relatively) short term disposable asset. I've worked with my institution setting up a lease program through Keyboard Acceptance. KA now has a division called Signature Leasing just for the particulars of leasing. On the other hand, I only see leasing as a good alternative if a business (or institution) is planning on extensive growth and in order to achieve that growth, they need assets that would put them in a cash flow bind to purchase outright. Hope this helps, Allan Allan L. Gilreath, RPT Assistant Director - TEAM2001 July 11-15, 2001 - Reno, NV agilreath@mindspring.com http://www.ptg.org/conv.htm Director: Laura Olsen, RPT Assistant Directors: Allan Gilreath, RPT - Gary Neie, RPT - Dale Probst, RPT -----Original Message----- From: owner-caut@ptg.org [mailto:owner-caut@ptg.org]On Behalf Of Robert Edwardsen Sent: Friday, March 30, 2001 7:46 AM To: caut@ptg.org Subject: Leasing pianos Our Music Department at the University of Rochester was told by the purchasing department yesterday that they don't want to purchase any more pianos but instead want to lease them like they do computers and cars. Sounds like a more expensive way to go than purcahseing but I was wondering if anyone else has run across this situation and how they've handled it. Regards to all, Rob Edwardsen
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