Synthetic Lease

Synthetic Lease - A Synthetic Lease is a financial arrangement that allows a company to lease an asset while maintaining the benefits of ownership for tax purposes, such as depreciation, without having the asset appear on the balance sheet as a liability. This structure is typically used for real estate or large equipment to improve financial ratios by keeping debt off the balance sheet.

Class Information

JSON JSON-LD OWL XML Markdown

Identification

Label (rdfs)
Synthetic Lease
Preferred Label
None
Alternative Labels
Off-Balance-Sheet Lease, Tax-Advantaged Lease
Identifier
N/A

Definition and Examples

Definition
A Synthetic Lease is a financial arrangement that allows a company to lease an asset while maintaining the benefits of ownership for tax purposes, such as depreciation, without having the asset appear on the balance sheet as a liability. This structure is typically used for real estate or large equipment to improve financial ratios by keeping debt off the balance sheet.
Examples
  • N/A

Translations

N/A

Class Relationships

Sub Class Of
Parent Class Of
  • N/A
Is Defined By
N/A
See Also
N/A

Additional Information

Comment
N/A
Description
N/A
Notes
  • N/A
Deprecated
False

Metadata

History Note
N/A
Editorial Note
N/A
In Scheme
N/A
Source
N/A
Country
N/A

Graph