Leveraged Leasing: IRS Versus the Courts
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Authors
Fredericks, Terry L.
Issue Date
1979
Volume
12
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|For both tax and non-tax reasons, businessmen, often under legal advice, are entering into various financing arrangements as to which there is disagreement on whether the transactions are to be considered sales or leases for federal income tax purposes. The controversy of whether a transaction is a sale or a lease exists because there is no agreed upon objective standard that can be applied to determine the category into which the transaction in question falls. As will be seen herein, the Internal Revenue Service ("IRS") and the judiciary disagree as to the appropriate standards that should be applied. This comment will attempt to provide the practitioner with a practical understanding of how to plan a transaction that will be considered a lease for tax purposes. Following a brief discussion concerning the advantages and disadvantages behind leasing, the objective standard employed by the IRS in determining whether a transaction is a lease will be delineated. Thereafter, the subjective standard applied by the courts will be examined and compared with that of the IRS...
Description
Citation
12 Creighton L. Rev. 1133 (1978-1979)
Publisher
Creighton University School of Law