Finance lease

For Income Tax purposes, an operating lease is defined as a contract under which the asset is not wholly amortized during the primary period of the lease, and where the lessor does not rely solely on the rentals during the primary period for his profits, but looks for the recovery of the balance of his costs and for the rest of his profits from the sale or re-lease of the returned asset of the primary lease period.   "Finance lease" or full payout lease, on the other hand, is a contract involving payment over an obligatory period (also called primary or [...]