contract that qualifies as a valid lease agreement under the Internal Revenue code.
A lease, also called a tax lease, in which, for IRS purposes, the lessor qualifies for the tax benefits of ownership and the lessee is allowed to claim the entire amount of the lease rental as a tax deduction.
A type of lease under which ownership of the equipment remains with the lessor. To qualify as a true lease for tax purposes, the Internal Revenue Service states that: 1) Title must remain with the lessor; 2) The rental payments must be competitive with industry rates, represent payment for use of the equipment and have a rate that does not vary appreciably with or without purchase option; 3) The option to purchase price must not be less than the fair market price at the lease's expiration date; 4) Equity cannot be allowed on rental payments. For tax purposes, the total monthly payments can be deducted.
a good option for a company that wants to control its budget with the lowest available payment, expecting growth, or wants to take special tax benefits associated with an operating expense
a lease which isn't a thinly disguised sale and which meets other IRS conditions
The lessee expenses the entire lease payment and cannot capitalize the asset for tax purposes. No early purchase option is stated. Fair Market Value is only quoted at lease maturity. A transaction recognized in law and by tax authorities as providing the lessor with the benefits and risks of ownership - with the basic qualification that the lessee may not build an equity position in the asset during the term of the lease.
A lease which, for federal tax purposes, permits the lessor to claim the tax benefits of ownership on the leased equipment. Rents under a true lease are taxable income to the lessor.
A transaction whereby the lessee expense lease payments and the lessor can claim tax benefits of ownership, such as depreciation.
A type of transaction that qualifies as a lease under the Internal Revenue Code. It allows the lessor to claim ownership and the lessee to claim rental payments as tax deductions.
Another term for tax lease where, for IRS purposes, the lessor qualifies for the tax benefits of ownership and the lessee is allowed to claim the entire amount of the lease rental as a tax deduction.
A transaction recognized in law and by tax authorities as providing the lessor with the benefits and risks of ownership - with the basic qualification that the lessee may not build an equity position in the asset during the term of the lease. .C.C. - The Uniform Commerical Code - a uniform set of laws adopted in all states, except Louisiana, to govern commercial transactions.
A True Lease is a transaction which qualifies as a lease under the Internal Revenue Code so that the Lessee can claim rental payments as tax deductions and the Lessor can claim tax benefits of ownership such as depreciation.
A true lease is a transaction that qualifies as a lease under the Internal Revenue Code (compare with capital lease), such that the lessee can claim rental payments as a tax deduction and the lessor can claim tax benefits associated with equipment ownership (such as depreciation deductions and the Investment Tax Credit).
(Tax or Operating Lease). A true lease, by definition, does not call for the full payout of the equipment cost during the lease term, nor does a true lease imply a transfer of ownership following the lease termination. The lessee is only paying for the equipment during a portion of that equipment's useful life. The lease payments are often treated as 100% tax deductible operating expenses. The lease generally does not appear on the balance sheet as a business asset or as a business liability. This type of lease also offers lower payments for lease term. A true lease may (but does not have to) include an FMV (fair market value) option which allows the lessee to purchase (take full ownership of) the equipment for its then fair market value at the lease termination.
A True Lease is a transaction that is eligible as a lease under the Internal Revenue Code. The purpose of this lease is to allow a Lessee to claim rental payments as tax deductions and to allow the Lessor to claim tax benefits of ownership such as depreciation.
A tax-oriented lease which complies with all IRS guidelines for a true lease.
A type of lease that qualifies as a lease under requirements of the Internal Revenue Code. It typically allows the lessee to claim lease payments as tax deductions and the lessor to claim tax benefits of ownership as a depreciation expense. - Please consult your accountant.