Posted 7/28/2010 13:48 (#1291452 - in reply to #1291132) Subject: I think you are correct---- I use the rule of thumb that if, when the lease is entered into, the....
Oskaloosa, Iowa 52577
terms are such that the lessee would be a financial fool to NOT take the leased item as an owned item at the end of the lease, then the lease is a financing arrangement, and not a true lease.
If the buyout price at the end is such that market conditions at the time lease ends would swing the lessee's decision one way or the other, then the lease is most likely a true lease.
Tax stuff-------results of case of lease vs conditional sale.
