Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

tax lease

Read a random definition: trademark-application amendment

A quick definition of tax lease:

A tax lease is a type of contract where someone who owns property lets someone else use it in exchange for money. The person using the property pays rent and can use it for a certain amount of time. There are many different types of leases, like ones for businesses or for mining. Sometimes, a lease can be transferred to someone else. A tax lease is also called a leveraged lease.

A more thorough explanation:

Definition: A tax lease is a type of leveraged lease used by businesses to finance the purchase of capital equipment. The lessor (usually a financial institution) provides nonrecourse financing to the lessee, who has substantial leverage in the property. The lease is collateral for the loan through which the lessor acquired the leased asset, and that provides the lender's only recourse for nonpayment of the debt. The lessee pays maintenance costs and taxes and has the option of purchasing the asset at lease-end for a nominal price.

Example: ABC Company wants to purchase a new machine for their manufacturing plant but cannot afford to pay for it upfront. They enter into a tax lease agreement with XYZ Bank, who purchases the machine and leases it to ABC Company. ABC Company pays monthly lease payments to XYZ Bank and is responsible for maintenance costs and taxes. At the end of the lease term, ABC Company has the option to purchase the machine for a nominal price.

Explanation: The example illustrates how a tax lease allows a business to finance the purchase of expensive capital equipment without having to pay for it upfront. The lessor (XYZ Bank) provides financing to the lessee (ABC Company) and takes ownership of the asset, which serves as collateral for the loan. The lessee pays monthly lease payments and is responsible for maintenance costs and taxes. At the end of the lease term, the lessee has the option to purchase the asset for a nominal price.

tax law | tax levy

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 8 👎
Help us make LSD better!
Tell us what's important to you
14:34
This early? surprising
babycat
14:36
acoustic what the hell did you write about
babycat
14:37
sorry that sounds mean, just kinda surprising that someone with your stats is having such a hard time. maybe look for some sort of consultant to review your materials
babycat
14:41
I'm going back to my white noise 10 hours playlist to grind out this essay
Got a name change now I’m exploding Effoc
Nah honestly it hasn’t been terrible I’m just impatient
Yall are right I be tweaking
babycat
14:45
oh okay you're good g
ExplodingEffoc
14:46
Love you baby
15:06
Back off
JumpySubsequentDolphin
15:11
fight fight fight
babycat
15:15
no fighting this is a website for being silly and having fun
babycat
15:19
november score release on wednesday i need to get my apps out before then lmao
JumpySubsequentDolphin
15:28
ugh I still have four more
babycat
15:30
girl we will do this!!
grind get them out before thanksgiving
put on your sigma phonk music
JumpySubsequentDolphin
15:31
@babycat: I believe in myself bc you believe in me <3
JumpySubsequentDolphin
15:31
thank you waspy bff
u welcome dolphy bff
i believe in you too
JumpySubsequentDolphin
15:32
that means to world to me bestie
JumpySubsequentDolphin
15:32
the world* damn it
babycat
15:38
waspy when did you apply?
JumpySubsequentDolphin
15:38
I’ve been stuck behind an unmoving train for twenty minutes IM NEVER GONNA GET OUT OF HERE
i applied december
it hurts your app i think
16:51
it’s oddly quiet on the decision front today
JeremyFragrance
17:06
yak you're effoc now?
LSD+ is ad-free, with DMs, discounts, case briefs & more.