Leased parent assets and capitalized "owned" children
Our client leases major equipment systems; as part of the leasing terms, our client agrees to repair major subsystems (e.g., engines, transmissions). If the parent asset is classified as "leased" in GAAP books, that parent and all of the children cannot be entered in the tax books. We can classify the parents as "owned" and get the tax book entries we need, but that's not just exactly correct. Is there a way around this issue?
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