{"id":1214,"date":"2025-02-20T11:44:11","date_gmt":"2025-02-20T11:44:11","guid":{"rendered":"https:\/\/mitsucap.com\/?page_id=1214"},"modified":"2025-03-10T04:59:29","modified_gmt":"2025-03-10T04:59:29","slug":"fmv-lease-operating-lease","status":"publish","type":"page","link":"https:\/\/mitsucap.com\/solutions\/fmv-lease-operating-lease\/","title":{"rendered":"FMV Lease (Operating Lease)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"1214\" class=\"elementor elementor-1214\" data-elementor-post-type=\"page\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ed495ce e-flex e-con-boxed e-con e-parent\" data-id=\"ed495ce\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-332d8e7 e-grid e-con-full e-con e-child\" data-id=\"332d8e7\" data-element_type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-3c900bc e-con-full e-flex e-con e-child\" data-id=\"3c900bc\" data-element_type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-18023a2 e-con-full e-flex e-con e-child\" data-id=\"18023a2\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f42643a elementor-widget elementor-widget-heading\" data-id=\"f42643a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">FMV Lease (Operating Lease)<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-039f37d elementor-widget elementor-widget-image\" data-id=\"039f37d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"43\" height=\"7\" src=\"https:\/\/mitsucap.com\/wp-content\/uploads\/2025\/02\/Line-red.svg\" class=\"attachment-full size-full wp-image-1621\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-29e499b e-con-full e-flex e-con e-child\" data-id=\"29e499b\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a6ebd31 elementor-widget-tablet__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"a6ebd31\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tA Fair Market Value (FMV) Lease provides the Lessee the right, but not the obligation, to purchase a leased asset at the end of the lease term for a price that represents the item&#8217;s then\u2010current worth. The FMV Lease end of term purchase option price is not determined in advance.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fb9f50b elementor-widget-tablet__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"fb9f50b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tA fair market value lease (FMV) may not qualify as an Operating Lease for tax accounting purposes. An Operating Lease may also referred to as a \u201cTrue Lease\u201d or \u201cTax Lease\u201d.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e1bf281 elementor-widget-tablet__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"e1bf281\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tThe most notable feature of this type of lease is that its structure does not contemplate a full payout of the cost of the equipment as is the case in a \u201cCapital\u201d or \u201cFinance\u201d type lease. Two of the common tests are:\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-369c60f elementor-widget-tablet__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"369c60f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>The term of the lease is generally not greater than 75% of the equipment\u2019s anticipated useful life.<\/li><li>The present value of the lease payments should not exceed 90% of the fair market value of the equipment using the Lessee\u2019s incremental cost of borrowing.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2569da6 elementor-widget-tablet__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"2569da6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tA significant benefit is that the monthly payments are also less than on a finance type lease. Typically, the Lessee either returns the equipment at the conclusion of the lease or may be granted the opportunity to purchase the equipment from the Lessor for \u201cthe then fair market value.\u201d Payments under this kind of lease structure are treated (by the I.R.S.) as rental payments and therefore are 100% tax deductible operating expenses. Also, as rental payments, neither the asset nor its corresponding\nliability needs to appear on the company\u2019s balance sheet. The Lessor retains the right to depreciate the equipment.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-61848fd elementor-widget-tablet__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"61848fd\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tAt the end of the lease\u2010base term the FMV Lease may offer the following options assuming there is no event of default:\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-16fe3bd elementor-widget-tablet__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"16fe3bd\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li>The Lessee may have the option to continue renting the equipment on a monthly basis.<\/li><li>The Lessee may have the option to \u201cre\u2010lease\u201d the equipment for a defined term.<\/li><li>The Lessee may have the option to purchase the equipment at the then fair market value.<\/li><li>Or, the Lessee may return the equipment with no further rental obligation.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-07f762f e-con-full e-flex e-con e-child\" data-id=\"07f762f\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2399ac7 elementor-widget elementor-widget-template\" data-id=\"2399ac7\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"container\" data-elementor-id=\"341\" class=\"elementor elementor-341\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t<div class=\"elementor-element elementor-element-646a818f e-con-full e-flex e-con e-child\" data-id=\"646a818f\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2a19bbda elementor-align-justify elementor-widget__width-inherit elementor-mobile-align-justify elementor-widget elementor-widget-button\" data-id=\"2a19bbda\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/mitsucap.com\/coming-soon\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-far-file-pdf\" viewBox=\"0 0 384 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M369.9 97.9L286 14C277 5 264.8-.1 252.1-.1H48C21.5 0 0 21.5 0 48v416c0 26.5 21.5 48 48 48h288c26.5 0 48-21.5 48-48V131.9c0-12.7-5.1-25-14.1-34zM332.1 128H256V51.9l76.1 76.1zM48 464V48h160v104c0 13.3 10.7 24 24 24h104v288H48zm250.2-143.7c-12.2-12-47-8.7-64.4-6.5-17.2-10.5-28.7-25-36.8-46.3 3.9-16.1 10.1-40.6 5.4-56-4.2-26.2-37.8-23.6-42.6-5.9-4.4 16.1-.4 38.5 7 67.1-10 23.9-24.9 56-35.4 74.4-20 10.3-47 26.2-51 46.2-3.3 15.8 26 55.2 76.1-31.2 22.4-7.4 46.8-16.5 68.4-20.1 18.9 10.2 41 17 55.8 17 25.5 0 28-28.2 17.5-38.7zm-198.1 77.8c5.1-13.7 24.5-29.5 30.4-35-19 30.3-30.4 35.7-30.4 35zm81.6-190.6c7.4 0 6.7 32.1 1.8 40.8-4.4-13.9-4.3-40.8-1.8-40.8zm-24.4 136.6c9.7-16.9 18-37 24.7-54.7 8.3 15.1 18.9 27.2 30.1 35.5-20.8 4.3-38.9 13.1-54.8 19.2zm131.6-5s-5 6-37.3-7.8c35.1-2.6 40.9 5.4 37.3 7.8z\"><\/path><\/svg>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">COMPANY PRESENTATION<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-762061e5 e-con-full e-flex e-con e-child\" data-id=\"762061e5\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5393c3bc elementor-widget elementor-widget-heading\" data-id=\"5393c3bc\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">How can we help you?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6807199c elementor-widget elementor-widget-text-editor\" data-id=\"6807199c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tLet\u2019s schedule a call to discuss your equipment leasing and finance needs.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1632606b elementor-align-left elementor-widget elementor-widget-button\" data-id=\"1632606b\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/mitsucap.com\/schedule-a-call\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-phone-square\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M400 32H48C21.49 32 0 53.49 0 80v352c0 26.51 21.49 48 48 48h352c26.51 0 48-21.49 48-48V80c0-26.51-21.49-48-48-48zM94 416c-7.033 0-13.057-4.873-14.616-11.627l-14.998-65a15 15 0 0 1 8.707-17.16l69.998-29.999a15 15 0 0 1 17.518 4.289l30.997 37.885c48.944-22.963 88.297-62.858 110.781-110.78l-37.886-30.997a15.001 15.001 0 0 1-4.289-17.518l30-69.998a15 15 0 0 1 17.16-8.707l65 14.998A14.997 14.997 0 0 1 384 126c0 160.292-129.945 290-290 290z\"><\/path><\/svg>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Contact us<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-79e36e6 elementor-testimonial--skin-bubble elementor-testimonial--align-left elementor-testimonial--layout-image_inline elementor-widget elementor-widget-testimonial-carousel\" data-id=\"79e36e6\" data-element_type=\"widget\" data-settings=\"{&quot;space_between&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:0,&quot;sizes&quot;:[]},&quot;speed&quot;:500,&quot;autoplay&quot;:&quot;yes&quot;,&quot;autoplay_speed&quot;:5000,&quot;loop&quot;:&quot;yes&quot;,&quot;pause_on_hover&quot;:&quot;yes&quot;,&quot;pause_on_interaction&quot;:&quot;yes&quot;,&quot;space_between_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:10,&quot;sizes&quot;:[]},&quot;space_between_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:10,&quot;sizes&quot;:[]}}\" data-widget_type=\"testimonial-carousel.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-swiper\">\n\t\t\t\t\t<div class=\"elementor-main-swiper swiper\" role=\"region\" aria-roledescription=\"carousel\" aria-label=\"Slides\">\n\t\t\t\t<div class=\"swiper-wrapper\">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"swiper-slide\" role=\"group\" aria-roledescription=\"slide\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial\">\n\t\t\t\t\t\t\t<div class=\"elementor-testimonial__content\">\n\t\t\t\t\t<div class=\"elementor-testimonial__text\">\n\t\t\t\t\t\t\u201cThe results were clear. The MitsuCap difference was their knowledge of my equipment as well as my industry\u201d\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"elementor-testimonial__footer\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-testimonial__image\">\n\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/mitsucap.com\/wp-content\/uploads\/2025\/02\/testimonial-1-1-348x348-50x50-1.jpg\" alt=\"R.L\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<cite class=\"elementor-testimonial__cite\"><span class=\"elementor-testimonial__name\">R.L<\/span><span class=\"elementor-testimonial__title\">President, US Sales for airport products<\/span><\/cite>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-8c7b4a5 e-con-full e-flex e-con e-parent\" data-id=\"8c7b4a5\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e463d1d elementor-widget elementor-widget-template\" data-id=\"e463d1d\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"container\" data-elementor-id=\"378\" class=\"elementor elementor-378\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2e5141c2 e-flex e-con-boxed e-con e-parent\" data-id=\"2e5141c2\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2be0ccf4 elementor-widget elementor-widget-heading\" data-id=\"2be0ccf4\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\">Looking for a First\u2010Class Business Relationship?\n<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-edfd1ca elementor-align-left elementor-widget elementor-widget-button\" data-id=\"edfd1ca\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/mitsucap.com\/schedule-a-call\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-angle-right\" viewBox=\"0 0 256 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M224.3 273l-136 136c-9.4 9.4-24.6 9.4-33.9 0l-22.6-22.6c-9.4-9.4-9.4-24.6 0-33.9l96.4-96.4-96.4-96.4c-9.4-9.4-9.4-24.6 0-33.9L54.3 103c9.4-9.4 24.6-9.4 33.9 0l136 136c9.5 9.4 9.5 24.6.1 34z\"><\/path><\/svg>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">GET A QUOTE<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>FMV Lease (Operating Lease) A Fair Market Value (FMV) Lease provides the Lessee the right, but not the obligation, to purchase a leased asset at the end of the lease term for a price that represents the item&#8217;s then\u2010current worth. The FMV Lease end of term purchase option price is not determined in advance. A [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":133,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-1214","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/pages\/1214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/comments?post=1214"}],"version-history":[{"count":19,"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/pages\/1214\/revisions"}],"predecessor-version":[{"id":1812,"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/pages\/1214\/revisions\/1812"}],"up":[{"embeddable":true,"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/pages\/133"}],"wp:attachment":[{"href":"https:\/\/mitsucap.com\/wp-json\/wp\/v2\/media?parent=1214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}