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Sauron [17]
3 years ago
15

. LG plans to structure a transaction as a legal sale of property, even though the economic substance of the transaction is a le

ase of the property. In her current position, the tax consequences of a sale are much more favorable than those of a lease. Ms. LG believes that if her position unexpectedly changes so that she would prefer a lease to a sale, she can ignore the legal formalities and report the transaction as a lease.
Business
1 answer:
arsen [322]3 years ago
5 0

Answer: LG needs to be aware of the implications around leasing her property or to selling off out rightly.

whether A sale or lease happens between her and the company /individual who wants to buy over or make use of the property. So she cannot ignore the legal formalities and  report the transaction as a lease.

Explanation:

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