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Business Definition for: lease
lease

legal agreement whereby the lessee uses real or personal property of the lessor for a rental charge. The contract may provide for the time period of lease, designated purposes, and restrictions.

See also capital lease , sales type lease , operating lease , direct financing lease
lease

contract granting use of real estate, equipment, or other fixed assets for a specified time in exchange for payment, usually in the form of rent. The owner of the leased property is called the lessor, the user the lessee.

See also sale and leaseback , operating lease , capital lease , financial lease
lease

contract giving the right of possession and use of an asset for a specified period in exchange for payments. The party owning the leased property is the lessor, the party using it is the lessee, and the lease payments are rentals. A lease contract may be written for a single piece of equipment, or it may be a master lease governing a continuing arrangement, regardless of the equipment leased. There are several commonly used types of leases.

A tax-oriented lease, sometimes called a true lease , gives the lessor the tax benefits of ownership, transferring the use of tax depreciation deductions, and in some cases, investment tax credits, from the lessee to the lessor in exchange for lower rental payments. All others, including finance lease , are nontax leases and are treated as conditional sales contracts for tax purposes. On the lessor's books, a lease is treated very much like a loan. Thus, the lessee can deduct only the interest portion of the rentals.

See also residualvalue , consumer lease , operating lease , sale and leaseback , capitalized cost
lease

the right to use an IP address temporarily assigned by DHCP . If a lease runs out while the computer is still connected to the network, DHCP automatically renews it or assigns a new address.

lease

use of another party's property in exchange for rental payment.

See also leasehold profit interest , leasehold value interest , leasehold insurance
lease

contract granting use of real estate, equipment, or other fixed assets for a specified time in exchange for payment, usually in the form of rent. The owner of the leased property is called the lessor , the user the lessee .

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See also capital lease , financial lease , operating lease , sale and leaseback
lease

a contract in which, for a payment called rent , the one entitled to the possession of real property ( lessor ) transfers those rights to another ( lessee ) for a specified period of time.

Example: Abel leases office space from Baker. Under the lease signed by the parties, Abel is allowed to conduct business activities within the office space, subject to specified restrictions , for a specified period of time. Baker is entitled to receive a specified amount of rent payments according to a specified schedule of payments.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2006, 2003, 2000, 1998, 1996, 1995, 1992, 1989, 1986 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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