Early termination of finance lease by lessee

Generally

Payment by lessee at end of term

Payment by lessee on termination of operating lease

Payment of rebate of rental

Lessee's taxable receipt of rebate

Lessor's tax deduction

Rebate exceeds rent paid

Selling agency commission

Avoiding sale of equipment to the lessee

Credit by way of

Selling the equipment on early termination

Lessor obliged to sell

Rent rebate