Can we own the asset at the end of the lease?

Yes, Capital Lease provides exclusive economic ownership of the asset.

Can we upgrade the asset before the useful life of the asset has expired?

A True Lease can be obtained for a term shorter than the useful life of the asset.

Can we hold onto the asset for a very long period of time?

A Capital Lease can include the option for a secondary lease period at a nominal rental.

Is leasing complicated?

Documentation is straightforward and generally standard.

What are the major tax consequences of leasing?

True Leases: The Lessee writes off the lease payments for tax purposes.

Capital Leases: The Lessee writes off the interest portion of the lease payments as well as the depreciation allowance for the asset.

         
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