Equipment With Taxes

• Category: Leases - Equipment
• State: Multi-State
• Control #: US-0831BG
• Format: Word; Rich Text

Description

According to Article 2A of the Uniform Commercial Code, personal property leases requiring total payments of $1,000 or more are not enforceable unless there is a writing, signed either by the party against whom enforcement is sought or by that party's authorized agent. The writing must sufficiently indicate that a lease contract has been made between the parties, and must contain a description of the goods leased, and the term of the lease. A description of the goods to be leased or the lease term is sufficient if it reasonably identifies what is described. Lease of Equipment with Lessee to Pay all Taxes Imposed Relating to Equipment is a type of lease agreement between a lessor and a lessee whereby the lessee is responsible for paying all taxes imposed on the equipment being leased. The lessee agrees to pay all taxes that are imposed by the relevant tax authorities relating to the equipment being leased. This type of lease agreement is often used when the lessor does not want to assume the responsibility of paying taxes and would prefer to transfer this obligation to the lessee. Types of Lease of Equipment with Lessee to Pay all Taxes Imposed Relating to Equipment include: • Operating Lease: An operating lease is a lease agreement in which the lessor retains ownership of the equipment and the lessee pays all taxes imposed on the equipment. • Finance Lease: A finance lease is a lease agreement in which the lessor transfers ownership of the equipment to the lessee and the lessee are responsible for paying all taxes imposed on the equipment. • Capital Lease: A capital lease is a lease agreement in which the lessor transfers ownership of the equipment to the lessee and the lessee are responsible for paying all taxes imposed on the equipment. • Sale and Leaseback: A sale and leaseback is a lease agreement in which the lessor purchases the equipment from the lessee and the lessee are responsible for paying all taxes imposed on the equipment.

Lease of Equipment with Lessee to Pay all Taxes Imposed Relating to Equipment is a type of lease agreement between a lessor and a lessee whereby the lessee is responsible for paying all taxes imposed on the equipment being leased. The lessee agrees to pay all taxes that are imposed by the relevant tax authorities relating to the equipment being leased. This type of lease agreement is often used when the lessor does not want to assume the responsibility of paying taxes and would prefer to transfer this obligation to the lessee. Types of Lease of Equipment with Lessee to Pay all Taxes Imposed Relating to Equipment include: • Operating Lease: An operating lease is a lease agreement in which the lessor retains ownership of the equipment and the lessee pays all taxes imposed on the equipment. • Finance Lease: A finance lease is a lease agreement in which the lessor transfers ownership of the equipment to the lessee and the lessee are responsible for paying all taxes imposed on the equipment. • Capital Lease: A capital lease is a lease agreement in which the lessor transfers ownership of the equipment to the lessee and the lessee are responsible for paying all taxes imposed on the equipment. • Sale and Leaseback: A sale and leaseback is a lease agreement in which the lessor purchases the equipment from the lessee and the lessee are responsible for paying all taxes imposed on the equipment.