A Lease Will Be Treated as a Non-Tax Lease If

A lease will be treated as a non-tax lease if it satisfies any of the following conditions EXCEPT:

A) The property may be acquired for the fair market value of the asset at the time when the option may be exercised.
B) Some portion of the lease payments is specifically designated as interest or its equivalent.
C) The lessee receives ownership of the asset on completion of all lease payments.
D) The total amount that the lessee is required to pay for a relatively short period of use constitutes an inordinately large proportion of the total value of the asset.

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