Finding Tax Deductions 10:46am 29.05.08

It’s that time of year again, and many are rushing to find tax deductions. But in all of the haste, make sure you’re finding tax solutions that will benefit your business, rather than set you back in the long term.

One popular solution is signing lease agreements for the purchase of new computers before June 30, but if you don’t do the math, you could be paying an interest rate as high as 47 percent. “A $997 computer that has repayments of only $12 per week over 3 years is actually costing you as much as 47.39 percent interest,” says Adrian Raferty, CEO of accountantsRus. “A $1,688 computer at $20.08 per week is charging an effective interest rate of 46.37 percent.” 

So Raferty’s advice is: if you’re looking to purchase a new computer, you’d be better off using your credit card, because you’ll only be paying half the interest.