According to the CRA, for a lease to be valid for tax purposes, then the lease must have a bargain purchase option, transferring the residual value to the lessee.

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Quizplus · Accepted Answer

The CRA does not require a lease to have a bargain purchase option for it to be valid for tax purposes. Leases can be structured in various ways, including those without a bargain purchase option, and still be recognized for tax purposes.

According to the CRA, for a Lease to Be Valid