Getting in to a copier lease

Sometimes a medical practice will enter into copier lease agreements that specify a certain base usage level and assess a surcharge (penalty) for usage above that level. The excess usage determination is performed periodically at set intervals throughout the lease term. When a practice's business cycle includes periods of unusually high and low copier usage and the lease does not provide for usage credit for low-usage periods, the medical practice is likely to lose the excess usage charge. I recommend negotiating future leases to assess excess usage charges only at the end of the lease or annually.

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Reed Tinsley, CPA