The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.


Definition & Citations:

One party buys equipment with the expressed intent to lease the equipment to another party for an agreed upon amount. The equipment purchaser carries all of the risk because if no one leases the equipment or the leaser fails to pay, the purchaser loses the investment. But, the purchaser gets all of the tax benefits of buying, leasing, and depreciating the equipment, making this a potentially lucrative arrangement. Examples of equipment leasing partnerships are rental car and moving truck companies. Other types of equipment bought and leased are computers, various machines, construction equipment, or other mechanical devices.


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