New "true lease" guidelines were issued by the IRS in May

New "true lease" guidelines were issued by the IRS | Norton Rose Fulbright

June 01, 2001 | By Keith Martin in Washington, DC
NEW “TRUE LEASE” GUIDELINES were issued by the IRS in May.

The IRS has had guidelines since 1975 on when it will issue advance rulings confirming that a transaction set up in form as a lease of equipment is in fact a lease for tax purposes. The issue is important to lessors who want to know they can claim tax depreciation on the equipment. The new guidelines are in Revenue Procedure 2001-28. For the most part, they merely repeat the earlier rules.

Keith Martin