True lease

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.
References in periodicals archive ?
An operating lease, or true lease, may allow the lessee to purchase the asset at the end of the lease term, but does not require it.
The Federal Circuit held that because there was undisputed evidence that the Dutch utility was reasonably likely to exercise the purchase option, the LILO transaction did not constitute a true lease, and Con Ed's rent deductions from the transaction should be disallowed.
Certain conditions, such as the fact that all rights, interest, and title transfer to P; that it is unreasonable to assume that P intends to go into the business of leasing the equipment; and the total rental payments' exceeding the equipment's fair rental value lead to a conclusion that a sale has occurred as opposed to the creation of a true lease.
Services include determining true lease values, marketing lease rights, appraising producing royalties, and, if needed, monetizing portions of royalties to meet personal financial or estate-planning needs.
would likely hold that the transaction is a true lease.
The origins of some of its traditional characters can be traced back to the Italian commedia del'arte and it was the Victorians who really fell in love with the style and gave it a true lease of life.
With a true lease, the lessor, such as a bank or leasing company, is able to use the bonus depreciation rather than the lessee.
It is misleading to capitalize the minimum lease payments of true lease small-ticket assets with a short lease term that may be replaced by a new lease again and again.
The airline claims the financing is borrowed funds and not a true lease.
In a true lease, payments are calculated on a portion of the product's value, making payments lower than with a capital lease.
True Lease--A true lease is a transaction that qualifies as a tax-deductible lease under the Internal Revenue Code.
The study noted that the cost savings from a true lease cannot be determined accurately if one simply compares the price of the lease to the price of the equipment.