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
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.
--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.