Equipment leasing programs are versions of DPPs that sound exactly like what they are. These are partnerships that acquire large amounts of equipment and lease them out to people and businesses. Here are some examples of equipment these programs offer for rent:
There’s a high demand for renting equipment instead of purchasing it, especially from small businesses. This creates an opportunity for equipment leasing DPPs. Not only can they make a considerable amount of income from rent payments, but depreciation deductions reduce taxes. Capital appreciation (buy equipment low, sell it high) is typically not a goal of an equipment leasing program, as equipment loses value over time.
Sign up for free to take 4 quiz questions on this topic