# Synthetic Lease

**IRI:** https://folio.openlegalstandard.org/RmhQ3nKmTrKWy38SI3PBeG

## Labels

**Alternative Labels:**

- Off-Balance-Sheet Lease
- Tax-Advantaged Lease

## 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.

## Sub Class Of

- https://folio.openlegalstandard.org/R8RfDzMtuMPdmNTonmhBxu

**Deprecated:** False