Capital Lease

Business, Legal & Accounting Glossary

Definition: Capital Lease


Capital Lease


Full Definition of Capital Lease


A lease that meets one or more of the following criteria, meaning it is classified as a purchase by the lessee: the lease term is greater than 75% of the property’s estimated economic life; the lease contains an option to purchase the property for less than fair market value; ownership of the property is transferred to the lessee at the end of the lease term; or the present value of the lease payments exceeds 90% of the fair market value of the property.


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December 06, 2021 https://payrollheaven.com/define/capital-lease/.
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Capital Lease. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/capital-lease/ (accessed: December 06, 2021).
American Psychological Association (APA):
Capital Lease. PayrollHeaven.com. Retrieved December 06, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/capital-lease/

Definition Sources


Definitions for Capital Lease are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.