Sales and leaseback transactions offer several benefits, including improved liquidity for the seller, as they convert an illiquid asset into cash while retaining operational use of the property. This arrangement also allows businesses to free up capital for reinvestment or debt reduction, enhancing financial flexibility. Additionally, it may provide tax advantages, as lease payments can often be deducted as business expenses. Overall, sales and leaseback can streamline operations and optimize balance sheets.
The Illinois sales tax rate on a lease buyout is 6.25.
A sales-type lease and a direct financing lease are both types of capital leases, but they differ in their accounting treatment and the parties involved. In a sales-type lease, the lessor recognizes a profit on the sale of the asset at the inception of the lease, as they effectively sell the asset to the lessee. In contrast, a direct financing lease does not result in an immediate profit for the lessor; instead, the lessor recovers its investment over the lease term through lease payments. Both leases transfer substantially all the risks and rewards of ownership to the lessee, qualifying them as capital leases under accounting standards.
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9.50/hr
Expenses that are not affected by sales volumes are called fixed costs. These costs remain constant regardless of the number of units produced or number of units sold. An example would be the lease on a building. Sales volume may fluctuate but lease payments typically remain constant (as outlined by the lease agreement).
Yes the sales rep would get commission on the transaction because a lease is a commissionable transaction. Sales reps also get commission if a customer finances a car through the dealership.
http://wiki.answers.com/Q/Are_sales_taxes_included_in_a_capital_lease"
In California, once you sign a lease, you are legally bound to it and cannot back out unless both parties agree to terminate the lease early.
Capital lease is that lease in which assets are acquired for substantial useful life of asset for use in business. Sale type lease is that in which discounted cash flow for miminum lease payment is higher than value of leased asset and only relevant to lessor.
"A lend lease is valuable to a business in that it benefits the employee and their family as well as the communities in which the business operates. Many of the benefits are in the area of interdependency between the business, the community and the employee."
A lease payment calculator is used to find out what an auto lease will really cost. It takes into account the MSRP, the negotiated price, the down payment, sales tax, length of lease, the end of lease car value, and new car lending rate, as well as the lease time.
Last check of janurary