Just click on the name of any
leasing term for an explanation

  • Click here to clear assumptions
  • Click here to set assumptions to tutorial example

    General assumptions:
    Asset cost
    Lease term (months)
    Month in which lease begins
    Year in which lease begins
    .
    Depreciable life for tax purposes:
    3 year MACRS property
    5 year MACRS property
    7 year MACRS property
    10 year MACRS property
    15 year MACRS property
    20 year MACRS property
    5 year 150DB property
    7 year 150DB property
    10 year 150DB property
    Class 8 CCA property
    Class 10 CCA property
    First year depreciation convention:
    Half year convention
    Mid quarter convention
    NEW! Special first year bonus depreciation:
    Bonus depreciation (as % of asset cost)
    .
    Lessee expects to purchase asset at end of lease term:
    Yes
    Expected fair market purchase price
    of asset at end of lease term
    Purchase option amount
    No
    Expected fair market selling price
    of asset at end of lease term
    Expected administrative cost
    of selling asset in buy case
    .
    Other fees and deposits:
    Security deposit
    Fees paid by lessee
    Upfront one-time fees
    Recurring periodic fees NEW!
    Frequency of recurring fees
    First month for recurring fee
    Fees paid in buy case
    Upfront one-time fees
    Recurring periodic fees NEW!
    Frequency of recurring fees
    First month for recurring fee
    .
    Frequency of rental payments:
    Monthly
    Quarterly
    Semi-annual
    Annual
    .
    Number of rent payments paid at lease commencement:
    (0) Standard arrears rents. Each rent is paid at the end of its respective period
    (1) Standard advance rents. Each rent is paid at the beginning of its respective period
    (2) First and last rents paid at commencement.
    All other rents paid at beginning of their respective periods.
    (3) First and last 2 rents paid at commencement.
    All other rents paid at beginning of their respective periods.
    .
    Enter the schedule of rents
    (you can have stepped rents, with up to 5 different levels)
    Number......
    of payments...    		 .....Payment
    ......amount
    .
    Lessee's cost of capital:
    Enter the lessee's debt rate
    Enter the lessee's after tax return on investment rate (ROI), or the after tax return on equity (ROE)
    .
    Amount of debt to include in Buy case:
    Equivalent loan (recommended method)
    Click here for explanation of "equivalent" loan
    No loan
    100% loan
    Specified loan amount (as % of asset cost)
    Enter the specifed loan amount (0-100%)
    .
    Lessee's tax assumptions:
    Month of lessee's tax year end
    Marginal federal tax rate
    Marginal state tax rate
    Recognition of tax benefits:
    Quarterly
    Annual
    .
    If lessee is currently subject to the federal Alternative Minimum Tax, or is currently in a tax loss carryforward position and expects to be in an AMT position thereafter, enter the following:
    AMT tax rate
    Final year in which lessee expects
    to be in AMT
    .
    If lessee is currently in a tax loss carryforward position, enter the following:
    Final year in which lessee expects
    to be in loss carryforward
    .
    You can enter title lines to appear at the top of printed reports:
    First title line
    Second title line
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