Capital Lease/
Finance Lease/$1 BuyOut

These types of equipment loans share the advantage of fixed monthly payments, but with the guaranteed option to purchase the equipment for a nominal price of $1 at the conclusion of the lease.

The lessee is considered the owner of the equipment and maintains full control of the residual value.

Lessee records the equipment as an asset and the lease payments as liabilities on their balance sheets.

The lessee can depreciate the equipment. Up to $500,000 of cost of equipment can be deducted in 1st year.