Taxes

• Income Tax
  Upon maturity of a Fair Market Value (FMV) Equipment Lease Agreement, the Lessee has the options to: 1) Pay the finance company an amount equal to the fair market value of the equipment, or 2) Return all equipment covered under the Lease, or 3) Continue remitting payments for a pre-negotiated period of time.  Clients prefer this type of option due to its accounting and income tax benefits, however, in many instances a customer may be misled into believing a Lease has a One Dollar ($1.00) Buy-Out option.