Should you consolidate your common-control leasing agreements?
Abstract: Accounting standards in the past had made it cumbersome for dealerships to set up a separate leasing entity for their real estate or heavy equipment investments. That was because of the complicated financial reporting requirements to combine (or “consolidate”) the entity’s financial results. But it’s easier now to create a separate legal entity as an effective way to achieve various tax and financial planning objectives or to limit your legal liability. This article highlights the ins and outs of setting up a separate leasing entity.