An Operating Lease transaction is not recorded on the balance sheet. The risk of ownership rests with the lessor. The lessee therefore enjoys the benefits of use of the asset without the responsibility of ownership. An Operating Lease is essentially a rental. Under an Operating Lease the depreciation benefits accrue to the lessor.
Disclaimer: The above is a generic representation only. It does not constitute financial advice or mortgage structuring advice. It is only to be used as a guide only. Please discuss your financial needs with a financial planner, accountant or your banking representative.
No reliance should be placed on the above information.