Capitalise

In standard contracts of leasing companies, the leased object is the property of the lessor in economic, legal and tax respects. The lessor capitalises it as an asset so it will be subject to depreciation and amortisation for tax purposes. The lessee (renter) does not capitalise the object. If, however, the leasing object is attributed to the lessee, i.e. barring the existence of criteria in the corresponding leasing remission in the leasing contract, the lessee capitalises the object. The lessor must then enter the corresponding sales price in his accounts.