What does the IRS require if lease payments are to be tax deductible?

Multiple Choice

• The initial present value of the lease payments must be less than 90 percent of the asset cost.

• The lease payments must be less than comparable loan payments if the asset were purchased.

• The lease term must be less than the life of the asset.

• The lease must be primarily for business purposes.

• The lessee should have the option to purchase the asset at a discounted price at the end of the lease term.