Have a Question about Leases?

Lease types

$1 buyout (more) Finance Lease is a $1 buyout lease. This is the most popular lease. It enables the lessee to purchase the equipment at the end of the lease term for $1. Finance Leases may not meet the requirements for a tax deductibility or for Off-Sheet accounting treatment. It is recommended that you consult with your Accountant to choose which option best fits your business needs.

10% buyout (more) 10% buyout is a cheaper payment than the $1 buyout due to the fact that the lessee will pay 10% of the cost of the equipment at the end of the lease term. These are considered True Leases are sometimes also known as Operating Leases. These types of leases can greatly impact your tax deductions. These leases can be treated at Off-Sheet expenses. True leases can also classified as an operating expense thus being totally tax deductible. Truly Leased equipment does not necessarily appear on the Lessee's Balance Sheet as an owned asset, nor do the lease payments appear on the lessee's Balance sheet as a fixed debt. It is recommended that you consult with your Accountant to choose which option best fits your business needs.

Fair Market Value (more) FMV is the cheapest payment. The end of the lease purchase option is not to exceed the fair market value of the equipment. This is extremely attractive to those companies that continually update or replace it's equipment. This allows the company to take the option of buying the equipment, turn it in, or the lease can be extended. This is also considered a True Lease & an Operating Lease. This lease has significant tax advantages. These leases can be treated at Off-Sheet expenses. True Leases can also classified as an operating expense thus being totally tax deductible. Truly Leased equipment does not necessarily appear on the Lessee's Balance Sheet as an owned asset, nor do the lease payments appear on the lessee's Balance sheet as a fixed debt. It is recommended that you consult with your Accountant to choose which option best fits your business needs.

 TRAC.  (more) TRAC lease is a special type of true lease that is generally used for "over-the-road" vehicles like trucks, tractors and trailers. Special provisions of the I.R.S. code allow for pre-determined residual values (as opposed to "future, fair market values) to be negotiated in advance while maintaining the "full deductibility" of a true lease.

Commercial Lending Resources, LLC.
Bossier City, Louisiana
877-742-2050 Ph.
318-742-2050 Ph.
318-742-2019 Fx.
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