38 CFR 61.4
§ 61.4 Definition of capital lease.
United States · 38 CFR — Pensions, Bonuses, and Veterans' Relief · Status: effective
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- Citation
- 38 CFR 61.4, § 61.4 Definition of capital lease, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/166165
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Full text
A capital lease, for purposes of this part, means a conditional sales contract that either:
(a) Will be in effect for all of the period of recovery listed in § 61.67(b); or
(b) That satisfies one of the following criteria:
(1) The lease transfers ownership to the lessee at the expiration of the lease term.
(2) The lease contains a bargain purchase option.
(3) The present value of lease payments that are applied to the purchase are equal to or greater than 90 percent of the fair market value of the asset.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.