Types of Lease?
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Answer / dv
financial lease, operating lease, crass barder
lease,leverage lease.
Is This Answer Correct ? | 22 Yes | 19 No |
Answer / pawan
there are two types of lease.
1)oprating or service lease-it is a short lease on a period
to period basis.
2)financial lease-it is long term and non-cancellable.
Is This Answer Correct ? | 5 Yes | 2 No |
Answer / peter athanas
OPERATING LEASE:were the lessor is responsible to do
maintanance and pay for Taxes and other outstandings
concerning with the property.
FINANCING LEASE:were the lessee holds the property for the
period that covers the life span of the leassed
property.under this type the leassee is responsible to make
maintanance and pay for the tax and other outstanding
balances concerning with that propety.
Is This Answer Correct ? | 3 Yes | 0 No |
Answer / asad
A. Operating Lease
An operating lease is basically a lease which is not a
finance lease
B. Capital Lease
A capital lease is a rental agreement in form, but the
substance of the transaction is an asset purchase. With
capital leases, the lessee records and asset and related
liability rather than rental expense. The lessee also record
depreciation on the asset. If a lease agreement meets any
one of the following criteria, it is considered to be a
capital lease:
1. The lease term is equal to 75% or more of the life of
the asset.
2. The present value of the minimum lease payments is
equal to at least 90% of the cost of the asset.
3. The lease transfers ownership of the asset to the
lessee at the end.
4. The lease contains a bargain purchase option (the
option price is so low we know that the lessee will exercise
the option to purchase the asset.
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Answer / h
what is cross border lease?
what is lease back lease?
Is This Answer Correct ? | 12 Yes | 12 No |
Answer / g.naresh babu
Different types of lease:
Finance lease:
Also called a financial sale, it allows for the benefits of flexibility as payments are spread out to a period of several years, often the equivalent of the actual cost of the equipment or property.
A common misconception is that payments made for a finance lease equals to ownership, but this is not always true. Nevertheless, the lessee does have the option to purchase the property after the lease expires, for a significantly much lower percentage of the actual cost.
This kind of lease, however, is not suitable for individuals who wish to acquire rapid tax benefits.
True lease:
Also referred to as a tax lease, this is the better choice when one wants to have rapid tax benefits.
It is also advantageous to professional institutions, as the lessor still remains the owner of the equipment, thereby trimming down costly investments when it comes to computers and other office-related gadgets that are prone to becoming technologically obsolete.
You will get the advantage of lower monthly payments as compared to that of a financial lease, and in some instances, these could actually be tax-deductible. When the contract expires, the lessee is given the option of purchasing the property for a very minimal amount.
Operating lease:
Also referred to as a tax lease, this is the better choice when one wants to have rapid tax benefits.
This is considered, in general, as a short-term lease, usually three years or less. It is often associated with high-tech equipment, or property that is prone to becoming technologically obsolete.
In this type of lease, the lessor takes more of a risk in ownership, therefore allowing for much lower monthly payments for the lessee. The lessee also has the advantage of the lease being considered as neither an asset nor a liability when it comes to taxes.
The lessee also has the option of buying the property at fair market value after the contract expires, similar to a tax lease.
Skip lease:
Yet another flexible lease type, wherein lessee and lessor agree to a payment schedule where some months, a set period of time, have no payment and penalty.
This kind of lease is typical for business institutions and organizations whose operations rely on a seasonal schedule. This is most common in school systems, and the agricultural and recreational industries.
Sixty or ninety-day deferred lease
This type of lease allows businesses that rely on income-producing equipments that take several months to generate revenue. A sixty or ninety-day deferred lease can be similarly structured to a finance and true lease. Lessees are required to make an advance payment, to be followed by the next ones after a sixty or ninety-day period.
Pre-paid purchase lease:
This is an option often taken by new businesses which have no credit history. Lessees are required to make a one-time advanced payment of ten to twenty percent of the property's total amount, thus reducing the monthly payments significantly. When the contract expires, the lessee is given the option of purchasing the property for a very minimal amount.
Sub-lease:
Often termed as "sub-let," this is a lease from one lessee to another.
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Answer / fd
1)operating lease
2)financial lease
3)direct leasing
4)capital lease
Is This Answer Correct ? | 3 Yes | 4 No |
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