CAPITAL LEASE CHECKLIST
This format is used to determine whether a lease action should be considered to be a
capital lease.
If the response to any of the following questions is "yes," then the subject action must
be considered a capital lease.
YES
NO
Ownership of the asset transfers to the Department of Veterans
Affairs (VA) during the term of the lease or shortly after the end of
the lease period.
Lease contains a bargain-price purchase option.
VA accepts all risks of ownership responsibility for destruction or
loss of the property.
Lease term exceeds 75 percent of the estimated economic life of the
asset.
______ Years
Lease Term
Economic Life ______ Years =
Percentage
_______%
Present value of the minimum lease payments over the life of the
lease exceeds 90 percent of the fair market value of the building at
the inception of the lease.
Present Value (PV) of Lease Payments $ ____________
Fair Market Value (FMV) of Building $ ____________ =
Percentage
____________ %
The building is not a general purpose building but is designed for
special purpose of the VA and is built to unique specification of the
VA as Lessee
There is no private sector market for the building.
The building is constructed on Government land.
CAPITAL LEASE CHECKLIST -- 1 of 1
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