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.

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词条贡献者

译员蓉婧，欧洲知名商学院国际金融专业，专注翻译各种与美国证券法律有关的法律文件。