The ever-increasing use of drones in commercial applications is now seeing industries look beyond the application advantages and examine the tax implications and indeed tax opportunities of drone leasing and drone ownership.
The good news is that as a functioning business tool, drones attract the same tax advantages as other capital purchases or operating leases.
In this article, we will look at the tax treatment of both options and identify some leading commercial drones that are not only professional and affordable, but also enjoy a favourable tax status.
One reason organisations choose to lease rather than purchase drone technology is as a ‘hedge’ against ownership risk. With rapidly changing drone technology and the inherent risks of time and technologically sensitive drone equipment, leasing can provide a more viable and risk-mitigated alternative to direct ownership.
This said, drone leasing advantages typically relate to cash flow benefits.
In addition to these tax benefits, lease payments also reduce taxable income and in a more efficient manner than depreciation (which is typical of an outright purchase).
Finally, you can treat operating leases like rentals by expensing the entire lease payment when the business makes it!
Of course, leasing doesn’t suit all needs or preferences. Outright purchase is often a better option for those that need to use up capital. It provides 100 percent ownership and allows for unfettered use of your drone equipment – no leasing rules and regulations!
From a taxation point-of-view, purchase also allows you to depreciate the cost of the collective drone equipment – from drone to software - over a given number of years. For many organisations, this is a much more controlled and tax effective way to get engaged with drone technology.
Whichever way you choose to get your birds in the air, drones can now be viewed as an essential business tool so if you are a legitimate business venture, you can now enjoy all the taxation benefits that come from them.
Let’s look at some drone technology that will suit both your application and taxation needs.
If you are already in or are considering moving into a drone enterprise, it is highly-recommended you speak to a commercial drone specialist.
At Sphere, we are widely considered one of Australia’s leading commercial drone experts.
From our Sydney-based solutions development centre, we combine the very latest in commercial drone technology with sales, leasing, service and solution development - all overseen by Australia’s leading drone professionals.
