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What is a capitalized lease?
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27th Feb 2011 by admint
A capitalized lease is a lease for a property with containing 1 or 2 of the following conditions:
1. the lease contains an option to purchase the property for less than the fair market value.
2. lease term is greater than 75% of the property's estimated economic life.
3. ownership of the property is transferred to the lessee at the end of the lease term
4. the current value of the lease payments is above the 90% of the fair market value of the property.
A capitalized lease is a lease for a property with containing 1 or 2 of the following conditions:
1. the lease contains an option to purchase the property for less than the fair market value.
2. lease term is greater than 75% of the property's estimated economic life.
3. ownership of the property is transferred to the lessee at the end of the lease term
4. the current value of the lease payments is above the 90% of the fair market value of the property.
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17th Nov 2009 In Leasing
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Subjects: capitalized lease,