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Finance Dictionary and Glossary of Investment Terms
synthetic lease
Definition 1.
A transaction that appears as a lease from an accounting standpoint, but as a loan from a tax standpoint. The end results are an off-balance sheet account of the financing and the tax benefits that accompany the financed asset.
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Definition 2.
An operating lease that is structured in a way so that it is not recorded as a liability on the balance sheet. Instead, it is considered to be an expense on the income statement.
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