These are generally used for short term leases of equipment. The lessee can acquire the use of equipment for just a fraction of the useful life of the asset. Additional services such as maintenance and insurance may be provided by the lessor. The leasing company, investment banker, or broker who arranges a leveraged lease. Pickle Lease A lease by a U.S. lessor to a foreign lessee authorized under the 1984 Tax Reform Act.
Accelerated depreciation is slowed down to a straight-line basis over a longer recovery period.
Named after Congressman Pickle of Texas. The current equivalent of payments or a stream of payments to be received at various times in the future The present value will vary with the discount interest factor applied to future payments. Purchase Option A provision by which a lessee has the right to purchase the equipment at the end of the lease. The purchase option may be stated at a specified amount or at fair market value. The requirement to purchase equipment at a particular time and at a predetermined price.