Network Copiers offer a Rental and Service Agreement as a bundled product to help you get the most out of your tax position. The service agreement is a warranty on all parts and labour for servicing or fixing the machine and also includes toner ink cartridges, drum replacements and any other maintenance required. The service agreement is billed on a usage basis as a per copy cost from as little as 1cent for black and white copy and an agreed price for color copies which can be negotiated depending on the anticipated usage and which is generally paid monthly or as agreed. The service agreement should also be 100% tax deductible as a business expense provided the usage is for business purposes only.
Generally rental is 100% tax deductible and the offer is with no upfront cost to the business.
This means that you can deduct the full cost of the monthly installment and have the option to buy the copier at the conclusion of the rental term at a minimal cost.
The rental agreement is just a specified term and the product is still financed through existing financial institutions with the rental component being an easier way to finance the acquisition.
Short term rentals are also available whereby the copier is returned at the end of the rental period with no obligation to buy or finance the copier. Short term rentals are still 100% tax deductible to the business however ownership is never transferred to the renter.