synthetic lease

A method for financing the purchase of real estate, whereby the lender creates a special-purpose entity that buys the property and then leases it to the ultimate user (usu. a corporation).

• A synthetic lease is treated as a loan for tax purposes and as an operating lease for accounting purposes, so that the “lessee” can deduct the property’s depreciation and the loan’s interest yet keep both the asset and the debt off its balance sheet.

---

词条贡献者

双语律师Terence，国际知名法学院法律专业，擅长翻译各类与油气、资源与采矿业相关的法律文件。