CLFP EXAM - Classification &
Terminology in Leasing 2025 |
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Terms in this set (70)
Helps avoid tax What is significant about IRS
abuse by Revenue Ruling 55-540?
defining what is
not a lease for
tax purposes.
, 1). Any portion of the periodic
Per IRS Revenue payment is equity,
Ruling 55-540, 2.) lessee automatically acquires title
what are the upon making scheduled payments
rules that if 3.) the total amount, which a lessee
present prevent is required to be paid is an
a transaction inordinately large portion of the
from being a total sum to buy the equipment,
lease for tax 4.) Nominal purchase option
purposes? 5.) some portion of the payment is
designated interest
What are the tax 1.) all rental streams would be taken
benefits of a into income,
lease for the 2.) tax credits
LESSOR? 3.) Allowable depreciations
What are the tax all rental payments can be treated
benefits of a as operating expenses and be not
lease for the subject to federal tax
LESSEE?
Created in 1975, it was designed to
What is IRS
fix the shortcomings of IRS Revenue
Revenue
Ruling 55-540 which tried to defined
Procedure 75-
a contract of sale but did not did not
21?
include the attributes of a lease.
, 1.) Risk - lessor must contain
Per IRS Revenue
unconditional risk during term;
Procedure 75-21,
2.) Right to Buy - Lessee may not
and later
have a right to buy at less than FMV,
changed by
3.) Investment: The lessee may not
Revenue
invest in the property;
Procedure 2001-
4.) Loans: The lessee may not lend
28, what are the
money to the lessor to buy the
attributes of a
property;
lease "for
5.) Profit: The lessor must show it is
advanced ruling
making a profit apart from the tax
purposes only"?
deduction
What may a Financing, conditional sales
transaction be contract, a capital lease, a finance
labeled if it does lease, a lease intended for security,
not qualify for as money over money transaction or
a lease per purchase money security
Revenue agreement, loan or non-tax lease.
Procedure 2001
-28?
Terminology in Leasing 2025 |
Updated Questions and Correct
Answers | Graded A+ | Verified
Answers | Just Released (Latest
Version)
Save
Terms in this set (70)
Helps avoid tax What is significant about IRS
abuse by Revenue Ruling 55-540?
defining what is
not a lease for
tax purposes.
, 1). Any portion of the periodic
Per IRS Revenue payment is equity,
Ruling 55-540, 2.) lessee automatically acquires title
what are the upon making scheduled payments
rules that if 3.) the total amount, which a lessee
present prevent is required to be paid is an
a transaction inordinately large portion of the
from being a total sum to buy the equipment,
lease for tax 4.) Nominal purchase option
purposes? 5.) some portion of the payment is
designated interest
What are the tax 1.) all rental streams would be taken
benefits of a into income,
lease for the 2.) tax credits
LESSOR? 3.) Allowable depreciations
What are the tax all rental payments can be treated
benefits of a as operating expenses and be not
lease for the subject to federal tax
LESSEE?
Created in 1975, it was designed to
What is IRS
fix the shortcomings of IRS Revenue
Revenue
Ruling 55-540 which tried to defined
Procedure 75-
a contract of sale but did not did not
21?
include the attributes of a lease.
, 1.) Risk - lessor must contain
Per IRS Revenue
unconditional risk during term;
Procedure 75-21,
2.) Right to Buy - Lessee may not
and later
have a right to buy at less than FMV,
changed by
3.) Investment: The lessee may not
Revenue
invest in the property;
Procedure 2001-
4.) Loans: The lessee may not lend
28, what are the
money to the lessor to buy the
attributes of a
property;
lease "for
5.) Profit: The lessor must show it is
advanced ruling
making a profit apart from the tax
purposes only"?
deduction
What may a Financing, conditional sales
transaction be contract, a capital lease, a finance
labeled if it does lease, a lease intended for security,
not qualify for as money over money transaction or
a lease per purchase money security
Revenue agreement, loan or non-tax lease.
Procedure 2001
-28?
