The Impact of TEFRA On Leasing Transactions by James M. Johnson, Ph.DTEFRA permits equipment owners to elect one of two ITC/depreciation options for tax purposes - each inferior to the package available under ERTA. This article examines the extent of TEFRA\'s inferiority by estimating the percentage increase in lessee rents necessary to "pass through" the tax benefit reduction. The article also establishes optimum TEFRA elections for three and five-year property. In Search of Tax Liability by Vincent Cannaliato, Jr.The article outlines the reasons for the diminishing availability of tax base for lease transactions including its most likely ramifications. Describing some of the more common reactions to the lack of equity, the article outlines a series of long-range solutions to this major leasing industry problem.Leasing Brokers & The Securities Laws By Michael Downey Rice, Esq.Certain interests in equipment lease transactions may be construed as "securities" under federal securities laws, which would subject these interests and the lease brokers who handle them to federal regulation. The article examines the determining factors, finding that registration of lease brokers as broker/dealers under the Securities Exchange Act of 1934 preferable to possible exposure to noncompliance.Leasing Company Valuation: Setting a Price for Merger, Acquisitions, or Divestiture By Daniel E. Heffernan, Sr.Due to tax law changes and the continued growth of financial services companies in recent years, an increasing number of leasing companies are being purchased and sold. †Given this trend, the purpose of this article is to describe a technique useful in valuing leasing firms. In addition, the article provides the reader with some insight into the observed differences between a public market valuation and a private market valuation. In this context, price premiums and discounts are discussed as the end result of the valuation process. The Enforceability of Leveraged Lease Income Tax Indemnities in Bankruptcy. By Ted W. Harris, Esq.The article examines the enforceability of tax indemnity agreements in lessee bankruptcy proceedings under the Bankruptcy Reform Act of 1978. After describing a typical leveraged lease transaction, the author presents an overview of the provisions of the 1978 Act and discusses specific planning that a lessor should consider, focusing on practical alternatives at the time of bankruptcy.Managing a Diversified Portfolio By S. Ronald Stone Examining management components to handle a diverse lease/finance portfolio, the article considers defining a market, prioritizing efforts, organization, sales and credit strategies, staff specialists and the controls necessary to a successful management technique.
<span style=\"font-weight: bold;\">The Impact of TEFRA On Leasing Transactions</span><br style=\"font-weight: bold;\" /><span style=\"font-weight: bold;\">by James M. Johnson, Ph.D</span>TEFRA permits equipment owners to elect one of two ITC/depreciation
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