---
title: Tax Depreciation Benefits of Leasing Explained
description: Tax Depreciation Benefits of Leasing Explained
---

[Blog | LHPH Capital ](https://www.lhph.com/blog)

# [Tax Depreciation Benefits of Leasing Explained](https://www.lhph.com/blog/tax-depreciation-benefits-of-leasing-explained)

 Written by [Murray Doig & Eyo Toe](https://www.lhph.com/blog/author/murray-doig-eyo-toe) | Jun 12, 2021 6:36:00 AM

Depreciation tax benefits are one of the well-known benefits of leasing… but how exactly does it work? The image above shows a comparison of taxable income for an LHPH Dealer and a Non-LHPH Dealer. In the example, a Non-LHPH dealer who had a total of $2.5MM in revenue would pay taxes on the entire amount. An LHPH dealer who accumulated the same amount in revenue has a much smaller dollar amount of taxable income due to the depreciation expense. In this case, the taxes paid are 20% of the taxable income saving the LHPH dealer $400K in taxes just for the one particular year! Always consult with your CPA on how to maximize your depreciation benefits.

[SUBSCRIBE TO OUR MONTHLY NEWSLETTER](https://lhph-5346625.hs-sites.com/newsletter-sign-up?__hstc=168007742.debbeaa98fd1979d71bdf7a9571c5a55.1642396269788.1642564590795.1642566966707.13&__hssc=168007742.25.1642566966707&__hsfp=3651485065)

 

[View full post](https://www.lhph.com/blog/tax-depreciation-benefits-of-leasing-explained)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Murray Doig & Eyo Toe"
  },
  "dateModified" : "2024-03-14T17:36:32.204Z",
  "datePublished" : "2021-06-12T06:36:00Z",
  "headline" : "Tax Depreciation Benefits of Leasing Explained",
  "image" : {
    "@type" : "ImageObject",
    "height" : 1562,
    "url" : "https://f.hubspotusercontent20.net/hubfs/5346625/LHPH_January2022/images/Tax-Depreciation-.png",
    "width" : 2550
  },
  "mainEntityOfPage" : "https://www.lhph.com/blog/tax-depreciation-benefits-of-leasing-explained",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60,
      "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png",
      "width" : 60
    },
    "name" : "CAPITAL FOR THE LHPH INDUSTRY"
  }
}
```