| 1. |
A capital lease is ideal when long-term ownership of the asset is the goal. |
| 2. |
Lessee makes 24-60 monthly payments and then has the option to purchase the
asset at the end for $1.00 to 10% of the original equipment cost. |
| 3. |
Capital leases, like bank loans, are evident on the lessee's balance sheet. |
| 4. |
Capital leases take advantage of IRS Section 179 allowing businesses to write
off up to $100,000 of equipment in the year it is purchased. |