True lease

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True lease

A contract that qualifies as a valid lease agreement under the Internal Revenue Code.

True Lease

A multi-year lease in which the lessee maintains residence or usufruct of the leased property or asset while the lessor may claim a tax deduction on depreciation. Likewise, the lessee may claim a capital expense deduction. An operating lease in which the lessor repossesses the property or asset at the end of the lease is a primary example of a true lease.
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the full priority treatment of true leases promotes efficient outcomes.
Mixing the use of true leases and conditional sales leases can help a business avoid exceeding the $800,000 cap because leased equipment does not qualify for Section 179.
These will include true leases with fair market value residual, full-payout leases, tax-exempt municipal programs, and options for seasonally adjusted "flex" payments.
You need to determine whether, for tax purposes, the leases are (a) true leases, in which case the lessor recovers its tax basis via depreciation deductions, or (b) leases evidencing a financing or sale, in which case the lessee depreciates the equipment cost and the lessor's tax basis is in the receivables.
Since only true leases allow transfer of non-debt tax shields, consideration of only capitalized leases may cause us to miss the true effect of tax status on leasing.
The Service also concluded that the auto leases were true leases for tax reporting purposes.
Fitch Ratings believes that yesterday's court decisions in the United Airlines' (United) bankruptcy proceedings regarding the treatment of the carrier's special facility bonds sets a troubling precedent which may weaken security provisions behind certain municipal leased-backed bonds, but potentially strengthen bondholder security on other lease structures and provide guidance for structuring future transactions as true leases.
CitiCapital offers the full range of leasing products including Master Leases, True Leases, and Tax Advantage Leases.
He is also providing single-investor funding for tax-oriented TRAC leases and the debt side of true leases.
Cost saving products include lease lines of credit, finance leases, operating leases, true leases, TRAC leases, small-ticket leases, term loans, municipal leases, tax-exempt leases for not-for-profits, single investor tax leases, leveraged leases, synthetic leases, contingent rent leases, vendor programs, portfolio acquisitions, and broker discount programs.
In ruling that it could not make a decision based solely on the documentary evidence before it, the Court did observe that, "To be sure, analysis of the leases in accordance with the PCH Associates factors indicates that they contain terms and were entered into under circumstances that may not be commonly associated with true leases of real property.
Cost saving products include lease lines of credit, finance leases, operating leases, true leases, TRAC leases, term loans, municipal leases, tax-exempt leases for not-for-profits, single investor tax leases, leveraged leases, synthetic leases, contingent rent leases, vendor programs, portfolio acquisitions, and broker discount programs.