Wednesday May 25, 2022

Buy property on vr, or vyut leasing? How to decide right

An entrepreneur (as well as a private individual) often faces a fundamental economic decision whether to file a property for cash, or rather to rent or rent the property. Each of these possibilities has its advantages and disadvantages.

Car

Buy for cash
The precondition for the purchase of assets in cash is that the entity has free funds at its disposal. Even in a situation where free funds are available, the purchase may not be made automatically in the most appropriate form of property transfer.

It is necessary to consider alternative methods of construction (vr, leasing) and the so-called costs of encirclement. The cost of encumbrance is usually denominated as a benefit for which the subject is prepared by deciding on another alternative.

The cost of encumbrance can be defined as the unrealized benefit of the second best variant of free funds.

If the company decides, for example. Between the purchase of a new car and the investment in new ethnic software streamline the economic activity of the company, the investment in the purchase of a car is voluntarily brought about by the efficiency of economic activity resulting from the modernization of software.

It is therefore necessary to take this into account. Although the purchase for cash is suitable, the subject does not become indebted, as is the case with the acquisition of property assets in the form of These assets and their cash flows are not encumbered in subsequent periods after the purchase of the need for credit and lease payments or the need to pay other costs associated with alternative forms of knowledge (eg fees for keeping loans, fees for concluding and managing loans, or leasing contracts, etc.) .

The main inconveniences of this method of disposal is the need for a high one-time investment of cash, which is negatively reflected in the cash at the time of disposal and in most fixed assets, so the fact that according to 25 paragraph 1 psm. a) account. 586/1992 Coll., On income taxes, expenditures (costs) for the position of long-term tangible and intangible assets cannot be considered tax deductible for tax purposes. Tax expense (expenditure) in the case of depreciated intangible and tangible fixed assets means only tax depreciation calculated in accordance with the provisions of the Income Tax Act (these are 26 33 ITA). This means that a one-off payment of cash made in one year must be divided into several tax periods from the point of view of ITA, which is not the most economically efficient.

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Couple na vr

When buying property in return, the company, compared to the purchase for cash, one big advantage, namely that it does not need in the amount of free financial resources. You can get it through the bank and other institutions.

In addition to this advantage, the company bought the property in return indisputably for the fact that it is purchased for foreign money, but at the moment of purchase with its property the buyer with the first depreciate this property.

This advantage is exacerbated by the fact that the years of heat are subject to the conditions set out in 24 para. 2 psm. zi) ITA with a deductible cost (expenditure). Purchases on behalf of the company usually pay for the payment of pensions first to tax deductible expenses (expenditure) to apply both depreciation of assets and paid years of loans and loans.

The disadvantage of the purchase in return compared to the purchase for cash is the need to spend the cost of the purchase, especially the paid years from the return, fees associated with the management of the balance, fees for the return of the return and, last but not least, the fact that indebtedness of the company, or in the received heat appears directly in the balance sheet of the company as an item of external sources. This, of course, somewhat worsens the position of the company in the case of risk assessment
investors, business partners, etc.

Leasing

Thus, leasing is a property. In this case, the word knowledge is completely changed in quotation marks, or leasing (and its operative and fi nannm) does not lead to the recognition of property in the true sense of the word. The ownership of the property is acquired for the entire duration of the leasing relationship to the lessor.

In the case of an operating lease, ownership will not be transferred to the lessee even after the expiration of the lease agreement. Therefore, only the first to use such property on the lessee, for which the lessee contractually undertakes to pay the lessor the installment of the lease.

The main advantage of this method of positioning is similar to that in the case of a company, the company does not need a large amount of funds to purchase assets at the date of purchase, or lease payments are spread over a long period of time. The advantage is that the fine (leasing of installments) is under the conditions set out in 24 paragraph 2 psm. h) and 24 par. 4 6 ZDP tax with eligible cost (expenditure).

Another advantage is the fact that leasing (unlike vru) does not represent an increase in the indebtedness of the company (from an economic point of view it would undoubtedly be one), or in fact a liability from leasing leases does not manifest itself in the company’s balance sheet as an item increasing foreign resources.

Leases from leases are reported in R conditions only in off-balance sheet records. Thus, in the conditions of R, an external analyst will not deduct from the company’s balance sheet information on assets acquired in the form of leasing. It is thus referred to additional data e.g. from the surface to the etn. The disadvantage of leasing is that the property is acquired for the duration of the leasing relationship owned by the lessor. In this case, the lessee is not able to apply to his tax deductible expenses (expenditure) and tax depreciation of these assets.

He gave an inappropriate fact that even when he leases property owned by the company’s (lessor) leases, especially in the case of new leasing, the lessor pays the lessee the risk arising from the ownership of the property, as if the owner was the real lessee (and in the case of operating leasing this fact is often hidden. in leasing prices).

often it is so nap. Required insurance of the leased property by the lessee, the lessee is reimbursed for the costs associated with repairs of the leased property, etc. As the lessor owns the leased property, the lessee’s first freedom to dispose of the leased property is thus known to be limited.

If the lessee needs to carry out any rights on the leased property, it is necessary to give the consent of the lessor, in the case of technical evaluation9, it is necessary to agree in advance who will pay for it. In connection with the leasing contract, the unenforceability of the lease of the contract by the lessee and thus the problems that arise for the lessee in the case where the property is leased, e.g. stolen.

ryvek from the book: Leasing in practice

1. dl: How is the leasing price calculated?

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ryvek is from the book
“Leasing in practice”
vydan nakladatelstvm
City Publishing,
For more information, visit
www.grada.cz

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