Dictionary of Finance and Investment Terms: equipment leasing partnership
equipment leasing partnership
limited partnership that buys equipment such as computers, railroad cars, and airplanes, then leases it to businesses. Limited partners receive income from the lease payments as well as tax benefits such as depreciation. Whether a partnership of this kind works out well depends on the general partner's expertise. Failure to lease the equipment can be disastrous, as happened with railroad hopper cars in the mid-1970s.
