Does anyone have experience in dealing with a Defeased Leveraged Lease to
Service Contract (Service Contract lease) Structure [Section 7701(e)(3)].
BofA has presented a proposal where the public agency would lease its assets
to a 3rd party.  For tax purposes, this transaction would be treated as a
sale.  A 3rd party investor could then write off the depreciation and
interest expense.  The public agency would maintain control and management
of the leased assets, plus receive up front money. What other vendors
provide this, or a similar, type of transaction.
Richard Averett, Finance Director, City of San Carlos (CA)
(650) 802.4205     fax (650) 802-4106   [EMAIL PROTECTED]


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