ccounting Treatment of Financial Leases ●Tax Considerations A lease must have economic benefits separate from tax consideration Recognized by IRS as a lease o Remaining useful life o May not exceed 30 years o Reasonable ROI o Renewal options o Purchase options o 20 equity o Property valuable only to the lessee 剥外校份贫多方号 YO年NEB证事00004. Tax and Accounting Treatment of Financial Leases zTax Considerations – A lease must have economic benefits separate from tax consideration – Recognized by IRS as a lease o Remaining useful life o May not exceed 30 years o Reasonable ROI o Renewal options o Purchase options o 20 % equity o Property valuable only to the lessee