How to structure a large asset purchase

Posted on Friday, November 6th, 2009 at 4:49 am    

For many businesses, their biggest costs are related to their office space. Determining how to structure this cost, however, is not always simple.

For some companies, it may be in their best interest to buy their office outright. If they do this, they can expense the building as an asset over the useful life of the asset. 

For other companies, they may prefer to rent the building and expense it according to their lease agreements. The decision, however, may not always be controlled by the company. In some cases, they are required to expense the asset as an operating or capital lease. 

If your building has questions about the legal consequences of a large asset purchase, contact the Iowa business lawyers of LaMarca Law Group, P.C., at (877) 327-2600. 

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