A tax-oriented lease can best be deﬁned as:
A) A short term lease where the lessor is responsible for the insurance, tax and upkeep. Often cancellable on short notice.
B) A longer term, fully amortized lease under which the lessee is responsible for the upkeep. Usually not cancellable without penalty.
C) A ﬁnancial lease in which the lessor is the owner for tax purposes.
D) A ﬁnancial lease in which the lessee sells an asset to the lessor and then leases in back.
E) A ﬁnancial lease where the lessor borrows a substantial of the cost of the leased asset.

Question

Quizplus · Accepted Answer

A tax-oriented lease is a financial lease in which the lessor is the owner for tax purposes. This type of lease is structured to provide tax advantages to the lessor, such as allowing them to claim depreciation, while also providing benefits to the lessee through lower rental payments.

A Tax-Oriented Lease Can Best Be Deﬁned As