equipment leasing limited partnership(redirected from Equipment Leasing Limited Partnerships)
Equipment Leasing Limited Partnership
A limited partnership in which the limited partners contribute funds that are used to buy expensive equipment, which is then leased to businesses. For example, an equipment leasing limited partnership may purchase a set of tractors and lease them to agricultural corporations. The partnership receives lease payments for the equipment, which are then distributed among the partners. An advantage to an equipment leasing limited partnership is the fact that much of the income from the lease payments is not subject to taxation because of deductions for interest and depreciation.
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equipment leasing limited partnership
A partnership in which investors' funds are used to acquire equipment that is leased to businesses. Lease payments are passed through to partners with much of the income sheltered from taxation by depreciation and interest expense. At the termination of a lease, the equipment is sold and a cash distribution is made to the partners.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.