What does the IRS require if lease payments are to be tax deductible?
A) The lease term must be less than the life of the asset.
B) The lease payments must be less than comparable loan payments if the asset were purchased.
C) The initial present value of the lease payments must be less than 90 percent of the asset cost.
D) The lessee should have the option to purchase the asset at a discounted price at the end of the lease term.
E) The lease must be primarily for business purposes.

Question

Quizplus · Accepted Answer

The IRS requires that the lease must be primarily for business purposes in order for lease payments to be tax deductible. This means that the asset should be used for business activities and not for personal use.

What Does the IRS Require If Lease Payments Are to Be