Difference between revisions of "Guideline lease"

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[[Guideline lease]] is a leasing agreement that meets all of the [[Internal Revenue Service]] ([[Internal Revenue Service|IRS]]) requirements for a genuine lease. If a lease meets the [[Internal Revenue Service|IRS]] guidelines, the IRS allows the lessor to deduct the asset's depreciation and allows the lessee to deduct the lease payments. Also called a tax-oriented lease.
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[[Guideline lease]] is a [[leasing agreement]] that meets all of the [[Internal Revenue Service]] ([[Internal Revenue Service|IRS]]) requirements for a genuine lease. If a lease meets the [[Internal Revenue Service|IRS]] guidelines, the IRS allows the lessor to deduct the asset's depreciation and allows the lessee to deduct the lease payments. Also called a tax-oriented lease.
  
  

Latest revision as of 04:32, 8 December 2020

Guideline lease is a leasing agreement that meets all of the Internal Revenue Service (IRS) requirements for a genuine lease. If a lease meets the IRS guidelines, the IRS allows the lessor to deduct the asset's depreciation and allows the lessee to deduct the lease payments. Also called a tax-oriented lease.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Guideline lease. Meets all of the Internal Revenue Service (IRS) requirements for a genuine lease. If a lease meets the IRS guidelines, the IRS allows the lessor to deduct the asset's depreciation and allows the lessee to deduct the lease payments. Also called a tax-oriented lease.

Related concepts

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