Nevertheless, the Act allows a lessor under a true lease
to establish its priority in the leased goods by complying with the attachment and perfection requirements.
Mazuma Capital has completed a USD36 million true lease
for a global medical diagnostics servicing firm, the company said.
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.
Thus, in a nontax-oriented lease the lessor cannot offer the low lease rates associated with a true lease
because the lessor does not retain the tax benefits available to the owner of the equipment.
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
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
In taxation, the criteria for reflecting a true lease
versus a conditional lease purchase or sale are the same for both the lessee and lessor, but multiple criteria could be used by each party to justify the treatment.
Ten years ago, about 30% of our business was true lease
and 70% was full payout,' says Christina McCaughey, director of financial services for Yale Material Handling.
Ten years ago about 30 percent of our business was true lease
and 70 percent was full payout," she states.
With a true lease
, the lessor, such as a bank or leasing company, is able to use the bonus depreciation rather than the lessee.