3 ms·
Maybe but OpEx is tax deductible. CapEx is not.
by lobsterloga 9y ago
Maybe but OpEx is tax deductible. CapEx is not.
- CodeWriter23 9y agoCapEx is deductible over the amortization period.
- qaq 9y agoI am pretty sure if they desire they can convert CapEx into OpEx.
- toomuchtodo 9y agoSure, if they sell the storage system to someone and arrange a leaseback.
- qaq 9y agoand that someone can be their own subsidiary in a jurisdiction with dif. tax treatment
- toomuchtodo 9y agoCan be within the same taxing authority. I've facilitated facility transfers and leaseback agreements in the US. Edit: Yes, you can't seize what isn't owned.
- 0xbear 9y agoThat's how Microsoft manages its campus real estate. :-)
- dx034 9y agoNearly every company does that. It's amazing how little many companies actually own. I've worked in offices where everything from building over furniture to even the plants was leased. The company ran with close to zero assets (services business). Pretty sure that this wouldn't make any sense if it wasn't for tax purposes.
- mbesto 9y agoHuh? You deduct CapEx cost over the depreciation period (server hardware is usually 3-5 years). Not sure what you mean by "CapEx is not".