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What is capitalized lease obligations?
Capitalized lease obligations refer to lease agreements where the lessee records the leased asset as a capital lease on their financial statements. This means the lessee treats the leased asset as if it were purchased with a loan, and includes the lease payments as both an asset and a liability on their balance sheet.
Can you depreciated leased office equipment?
No, leased office equipment cannot be depreciated by the lessee, as depreciation applies to owned assets. Instead, the lessee typically records lease payments as an expense on their income statement. However, if the lease qualifies as a finance lease under accounting standards, the lessee may need to recognize the asset and liability on their balance sheet, allowing for depreciation of the asset. Always consult with an accounting professional for specific situations.
Can HUD break a lease?
They can TERMINATE a lease, if the lessee is in violation of the lease.
What is the meaning of Lessee?
The person to whom a lease is given, or who takes an estate by lease.
What happens to a written lease agreement when the land owner conveys the land to another person?
If the lease was properly executed by the lessor and lessee the property is subject to the lease and the new property owner must honor it.If the lease was properly executed by the lessor and lessee the property is subject to the lease and the new property owner must honor it.If the lease was properly executed by the lessor and lessee the property is subject to the lease and the new property owner must honor it.If the lease was properly executed by the lessor and lessee the property is subject to the lease and the new property owner must honor it.
What are the Advantages of a lease to a lease agreement?
The lessee can return the equipment at the end of the lease period if it is no longer needed
What is a lessor and lessee?
A lessor is someone who grants a lease of something to someone. For example, in a commercial building lease scenario, the lessor is the landlord (building owner), and the tenant will be known as the lessee.
What is a finance lease?
Essentially, a finance lease is a type of lease. It is a contract where the lessee agrees to pay installments on a particular asset.
How lease property mortgaged to Bank can be sold?
it can be sold to the lessee
How do you remove a co lessee from auto lease?
To remove a co-lessee from an auto lease, you typically need to contact the leasing company for their specific requirements, as policies can vary. Generally, you may need to provide documentation, such as a credit application for the remaining lessee and proof of income. The leasing company may require the remaining lessee to qualify financially to take over the lease. Once approved, they will provide the necessary paperwork to officially remove the co-lessee.
What is the accounting treatment for lease to own agreements?
Lease to own agreements are treated as a combination of a lease and a purchase in accounting. The lessee records lease payments as expenses and the asset as a liability on the balance sheet. Over time, the lessee gradually assumes ownership of the asset as payments are made.
Who owns the lease of a property?
The ownership of a lease typically lies with the person or entity that holds the lease agreement, also known as the lessee. The lessee is granted the right to possess and use the property for a specific period of time as defined in the lease agreement. The owner of the property, known as the lessor, retains legal ownership but grants certain rights to the lessee for the duration of the lease.
