The Financial Accounting Standards Board (FASB) recently proposed to “improve disclosures” of various types of guarantees. However, in doing so, the FASB has threatened the viability of the popular synthetic lease product.  The FASB publicized its “Interpretation” of the current Financial Accounting Statements (FAS) in its Guarantees Press Release on May 22, 2002.

This action comes on top of the proposed “Interpretation” of FAS 94 affecting synthetic leases used by special purpose entities (SPEs).  These Interpretations will make synthetic leases more expensive for lessees and subject to expanded disclosures from current rules.  See my discussion of the SPE issues in the March BLN and the May BLN on SPE changes.

The FASB’s stated purpose of this new Interpretation is to improve disclosures of loan guarantees.  To decide for yourself, click on Exposure Draft (in Acrobat) to review the proposed Interpretation, entitled Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others.  However, the Interpretation has a far more reaching effect.  It extends to contingent payment agreements, performance guarantees, indemnification agreements and other indirect guarantees.  It does not apply to residual guarantees by a lessee imbedded in a capital lease booked under FAS 13 (which in is “on-balance sheet”), product warranties, lessee’s secondary liability in a restructured lease and other guarantees.  For more discussion on the broader scope and impact of the Interpretation, see Jeff Taylor on Guarantee Rules . Jeffrey Taylor is a well-known leasing trainer, and the founder of the Executive Caliber web site.  His accounting background helps you understand this stuff.

Tip:  If you want to contribute your views to the FASB, you must act fast because the comment period ends June 21, 2002.

Here are the essential aspects of the proposed Interpretation that affects FAS 5, 57 and 107:

*Purpose:  To clarify the requirements for the guarantor’s accounting for and disclosures about certain guarantees including the residual guarantee inherent in synthetic leases.

*Amount of Guarantee Recognized/Booked:  At the inception of the guarantee, the lessee must recognize a liability for the “fair value”  (that is, the market value) of all of the obligations that it has undertaken in a synthetic lease.  This amount could equal as much as 89.9 percent of the original asset cost because of the implicit residual guarantee of the lessee. 

     *Market Effect: It remains to be seen how you calculate the liability for the lessee’s residual guarantee inherent in a synthetic lease.  However, the liability may be very high as a proportion of original asset cost.  Consequently, lessees may be unwilling or unable to use synthetic leases to accomplish the old twin objectives of keeping the lease obligation “off-balance sheet” while retaining the tax benefits for the equipment. 

*Required Disclosures: To satisfy the requirements, a guarantor must disclose the:

(a) nature of the guarantee, including how the guarantee arose and the events or circumstances that would require the guarantor to perform under the guarantee;

(b) maximum potential amount of future payments under the guarantee;

(c) carrying amount of the liability, if any, for the guarantor’s obligations under the guarantee; and

(d) nature and extent of any recourse provisions or available collateral that would enable the guarantor to recover the amount it pays under its guarantee.

Under current rules entities generally disclose only the nature and amount of guarantees. 

*Effective Date:  If, as expected, the Interpretation becomes effective, be aware of these timelines:

*The initial recognition and measurement provisions of the proposed Interpretation apply in the first fiscal year beginning after September 15, 2002; and 

*The disclosure requirements in the proposed Interpretation would be effective for financial statements of interim or annual periods ending after October 15, 2002. 

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2. Improving Economy Reveals New Deal Opportunities

The news on the economy is mostly good these days.  But are you wondering where you find good new deals?  Economic reports and some impending changes in environmental laws plant the seeds of opportunity for lessors and lenders.

The Commerce Department reported that orders for durable items (goods expected to last for three years or more) jumped 1.1 percent in April.  Some economists feel encouraged that this improvement marked the beginning of capital spending.  The lack of capital spending pushed the economy into the 2001 slow-down/recession.

A Labor Department report showed productivity rose 8.4 percent in April.  Rising productivity means that corporate workers produce more value with fewer people.  According to one economist, the improvement satisfies a necessary precondition for an increase in employment while creating little risk of inflation.

With this good news, many of you may puzzle over where the improvement exists in your markets.  I know only too well that to make predictions in our economy, or to play economist, would add me to the list of dartboard pros.  But consider these ideas for good equipment financing transactions supported by current economic reports:

*Manufacturing Equipment. Orders for machinery rose 4.5 percent in the month of April, following a 1.5 percent drop in March. This change is the biggest increase since March 2000.  See: Economy on Path for Sound Recovery, Data Show, May 31, 2002 (Reuters).  In May, business activity rose again according to the Institute for Supply Management.

*Computers and Electronics. Orders for computers and electronic products rose 3 percent.  Non-defense capital goods orders, excluding aircraft, rose by 4% in April after a 3.4% decline in March. See: U.S. Productivity Rose 8.4% in 1st Quarter; Factory Orders Jumped in April, May 31, 2002 (Dow Jones Newswire).

*Big Rig (Class 8) Trucks and Other Diesel Equipment.  Transportation orders fell by 2.8% in April.  That change reflects a huge drop in orders for aircraft, which plunged 37.1 percent.  Durable Goods Orders on the Rise, May 23, 2002 (Associated Press).

However, orders in the long-haul trucking industry increased 70 percent.  Trucking companies have placed these orders to beat the October 1, 2002 effective date of tougher environmental rules promulgated by the Environmental Protection Agency (EPA).  The EPA rules require a significant reduction in “oxides of nitrogen” or NOx and other emissions.  By ordering new trucks before October 1, 2002, trucking companies avoid purchases of the new less-polluting engines required after October 1, 2002. Both Celadon Group, Inc. and US Xpress Enterprises Inc. have ordered trucks to beat the deadline.

Manufacturers involved in the new rules and sales include Detroit Diesel Corporation a unit of DaimlerChrysler AG, International Truck and Engine Corporation (Navistar) Chicago, Caterpillar Inc., American Isuzu Motors Inc., Cummins, Inc., Volvo Truck Corporation, Mack Trucks, Inc. and Renault Trucks.  See: Truck Firms Go on Buying Binge To Circumvent a New EPA Rule, Wall Street Journal (SW Ed.), 2002 May 28; Section A:1 (Col. 5-6). As a lessor or lender, you too can take advantage of the buying binge to offer new leasing and financing to credits that you still can approve these days.  For a worldwide virtual library of trucking companies, see: Trucking Company Library.

Tip:  Check your residual assumptions on these big rigs and other diesel engines.  Reevaluate your disposition strategies to manage potential changes in residual value realizations.  Watch for technology changes in new diesel engines after October 1, 2002.  As an owner/lessor, you may want to set lower residuals on new deals until you have market data on sales involving the new diesel technology.  Note that this change in law is the first of two major changes coming down the road for diesel engines in trucks, buses and other transportation equipment.  Current diesels will be “grandfathered” (that is, protected from the change in law), which explains the significant increase in purchases of current equipment.  On January 1, 2004, all manufacturers (not subject to the October 1, 2002 requirement) must comply.  On January 1, 2007, the EPA plans to implement another requirement to reduce NOx and other emissions by approximately 90 percent more than the October 1, 2002 levels (subject to a technology feasibility review).  Diesel buyers are expected to acquire pre-2007 year equipment to avoid the 2007 standards--another opportunity for financing and leasing.  For more technical information on these new EPA rules, see New Emission Standards (a very useful site on diesel technology and other related information).  

*Communications Equipment. Orders for communications equipment rose 12 percent following an 11 percent decline in March. See: Durable Goods Orders on the Rise, May 23, 2002 (Associated Press).

Tip:  If you want to explore economic data from 12 business districts around the country, including your markets, look at the Federal Reserves Beige Book (last updated April 24, 2002). Collected by the Federal Reserve, the book summarizes comments received from business and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials.

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3. Leasing Boeing Jets to the Federal Government Hits Strong Head Wind

The Boeing Company hit some turbulence recently as it tried to arrange a $26 billion lease of modified jetliners to serve as fuel tankers for the Air Force.  The Office of Management and Budget (OMB) and Senator John McCain, an Arizona Republican, questioned the cost-effectiveness of replacing an aging fleet of fuel tankers with Boeing jets. 

Budget office director Dan Crippen put the total cost to lease 100 of the 767-200ER aircraft at about $37 billion in current dollars from next year though 2020, compared with about $25 billion for a purchase.   Senator John McCain, who released the analysis, said that it showed the lease was "a bad deal for taxpayers, a bad deal for the military and a bad deal for pretty much everyone but Boeing." See: "Auditors Cite High Cost of Boeing Lease Deal" Wed May 8, 2002 (Reuters).   

While the policy issues concerned overall cost and capacity of the fleet, Senator McCain touched a real nerve of Federal leasing.  He reportedly plans to propose legislation that would require all leases lasting longer than a year to be paid for with funds from the military service’s procurement budget.  The Air Force, by contrast, apparently planned to pay for the tanker lease from its operations and maintenance budget.  The so-called “O&M budget” generally provides funding annually and does not involve the same rigorous approval process as the procurement budget.  If McCain prevails, Federal leasing for the military and other Federal agencies could become much more difficult.  See: OMB Questions Leasing Boeing Jets For Use as Tankers, The Wall Street Journal (SW Ed.), 2002 May 8; Section A:8 (Col. 4).

Funding for leases to the Federal government involves arcane rules unlike any rules for commercial transactions, as illustrated in part by Senator McCain’s legislative idea.  Obviously, the Air Force deal represents a significant economic boost for Boeing.  The lease versus buy analysis, together with a heavy dose of politics, will undoubtedly remain at the center of the controversy for Boeing.

Tip:  If you are involved in leases to the Federal government, you may want to look at Chapter 19 of my book, Business Leasing for Dummies (BLFD)®, entitled, “Doing Business with Federal, State, and Local Government Entities.”  In that chapter, I mention that ”(l)easing to the federal government involves more regulations and twists and turns than you can imagine.”  If you lease equipment to the Federal government, retain knowledgeable advisors to avoid making assumptions and errors that can spoil your fun in these unique deals.  My partner, Tim Mills, a very active and capable participant in Federal leasing, helped me edit Chapter 19.  We have worked through many transactions and problem situations together.  Feel free to call Tim at (202) 457-6000 or me to ask questions before you venture into the world of Federal leasing.

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4. Companies Face Loss of Extraterritorial Income Exclusion (ETI)

A brutal and expensive trade controversy has taken aim on the Extraterritorial Income Exclusion (commonly known in the leasing industry as the “ETI”).  Ruled by the World Trade Organization (WTO) as an illegal U.S. tax subsidy, the WTO plans to assess damages incurred in the Economic Union (E.U.) on June 17, 2002.  See: Exporters Fear Loss of Subsidy, The Wall Street Journal (SW Ed.), 2002 May 1; Section A:2 (Col. 2-4).

Although the U.S. has generally resisted the complaints, this time Representative Amo Houghton (Republican, New York) introduced H.R. 4151 on April 10, 2002.  The stated purpose of this bill is “to amend the Internal Revenue Code of 1986 to simplify certain rules relating to the taxation of United States businesses operating abroad, and for other purposes.”  In short, Representative Houghton aims to repeal the ETI. 

Most nations only tax the income of corporations earned within their borders.  However, Uncle Sam taxes American corporations on their worldwide income.  By contrast, if a foreign corporation sells its products through a branch in the U.S., its country does not tax the income generated by the corporation in the U.S.  Consequently, U.S. taxpayers shoulder a heavier tax burden that may put them at a competitive disadvantage.  To even the playing field, Congress has enacted tax breaks to the general rule of taxing worldwide income.  The ETI structure, which replaced the Foreign Sales Corporation (FSC) laws, provides some tax relief.

With the ETI, you can exclude a portion of your income earned outside of the U.S. from your gross income.  If you lower your gross income, Uncle Sam has less income on which to impose income taxes.  For leasing, as a lessor you can exclude 30 percent of your foreign sale and leasing income earned outside of the U.S.

The real issues at stake involve the simplification and competitiveness of the U.S. international corporate income taxation system.  The ETI may become a focal point of that debate.  The goal should be to enable U.S. businesses to compete on a level playing field with businesses organized in other countries.  In other words, our tax system should be reformed to do directly what the ETI does indirectly--reduce taxation on worldwide income of U.S. companies.

To intensify concern over the ETI, various countries apart from the WTO have refused to wait for U.S. tax reform, and may take unilateral action to solve the trade and tax disputes.  See: U.S. Warns Against Steel Retaliation Without WTO Panel, May 1, 2002 (Dow Jones Business News).  In any event, the WTO action will occur soon and may foretell the future of the ETI.

Tip:  For assistance in dealing with any legislative or public policy challenges involving foreign trade and tax issues such as the ETI, you may want to enlist the help of the Public Policy group at Patton Boggs LLP.  Influence Magazine rated this group as the top lobbying practice in Washington, D.C. in 2001.  Feel free to contact me, and I will identify the right team to help you.

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5. Events and Speeches - New Appearances Cover Business Aviation and Energy

*Mayer Speech: "Personal Property Leasing in the Oil Patch". I will be delivering this speech sponsored by the Dallas Bar Association, Energy Law Section.  Please join us at noon on Wednesday, June 19, 2002 at the Dallas Bar Association (DBA), located at Belo Mansion on Ross Street in Dallas, Texas.  I will cover fundamental benefits of leasing equipment used at drilling and other energy production sites.  In addition, I will discuss how to resolve conflicts that arise in leasing or lending transactions in which energy assets sit on or are attached to real property subject to long-term mineral or other rights in favor of another person.  For more information, click on Leasing in the Oil Patch.

My thanks for this opportunity goes to my partner, Martin Gibson, who serves as the Chairperson of the Energy Law Section of the DBA.  He concentrates his practice in energy law with a particular focus on exploration, production, transportation, development and financing issues.

*Mayer and Slater Speeches on Business Aircraft Worldwide. My partner, Rodney Slater, former Secretary of Transportation, and I will be speaking at the 7th Annual Business Aircraft Conference entitled “Evaluating Corporate Aircraft Transactions & Fractional Ownership Interests.”  Sponsored by the Strategic Research Institute (SRI), this conference will be held on Thursday, July 11 and Friday, July 12 in New York City.  I will be moderating an international panel and Rodney will be delivering the first day’s luncheon Key Note Speech.  Please join us.  For information/registration, contact SRI at www.srinstitute.com/cx352 or call (888) 666-8514 or (646) 336-7030.

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6. Corporate America Resists SEC's Plan for Faster Reporting

No one would describe the Securities and Exchange Commission (SEC) as a wallflower.  Recently, however, the activist SEC has initiated many high-profile actions on the regulatory and enforcement scene. 

You have seen the SEC pursue the likes of Halliburton (for using flawed overrun cost accounting), Dynegy Inc.  (for pumping up revenues on energy trades)  and Microsoft Corp. (for understating revenues by padding reserves).  In fact, the SEC is taking on Wall Street itself.  See: S.E.C. Taking Closer Look at Wall St., by Richard A. Oppel Jr., New York Times, May 31, 2002 (available online to subscribers at S.E.C. Takes on Wall St.)   

At the same time, the SEC intends to make a permanent change in corporate accounting and reporting.  It has proposed and taken public comment on new rules that mandate that reporting companies file their financial reports faster and with more detail than presently required. 

The new speedier reporting applies to:

*Companies with a public float of at least $75 million determined within 30 to 60 days before the end of the companies’ last fiscal year;

*Companies that have been subject to Securities Exchange Act of 1934 reporting rules for at least 12 calendar months; and

*Companies that have filed at least one annual report. 

The SEC’s plan requires reporting entities to file quarterly reports on Form 10-Q in 30 days instead of 45 days after the end of the applicable quarter.  It also requires that each company file its annual report on Form 10-K in 60 days instead of 90 days after the company’s fiscal year ends.  In addition, the SEC wants companies to disclose in their annual reports where investors can obtain free copies of all reports on Forms 10-K, 10-Q and 8-K (current event reports) on their web site as soon as reasonably practicable.  To read the SEC’s proposed rules, click on: SEC’S Accelerated Filing Plan.

The rub here is that reporting companies already struggle to meet reporting deadlines.  The existing challenge arises in part due to unrelenting demands on lean financial staffs.  These staffs meet a variety of demands in operating their companies ranging from financial analysis and funding to regulatory compliance.  In some cases, companies have commented that they will have to hire an additional 20 percent in staff to comply with the new rules.  They also realize that they will require more management time to meet the new deadlines.  Such an effort would arguably divert management resources from the business of increasing shareholder value and provide little real gain for the shareholders.  Further, some companies worry that the faster time frame will undercut the quality of reporting demanded by the SEC. 

Unfortunately for these companies, it seems that not only the SEC but also investors want the faster reporting.  The investor view came out in a recent poll conducted for the Dow Jones Newswire by Motley Fool (the financial advice company).   Of the 1,390 responses received, 67 percent said that they consider it crucial to obtain information faster.  Another 24 percent said that sooner is better, but not crucial. See: Winokur Munk, Cheryl. SEC Plan Calling For Faster Filings Meets Resistance, The Wall Street Journal (SW Ed.), 2002 May 22; Section C:1 (Col. 2-4).

By now you should understand that these days the public neither trusts accountants nor the companies or executives they serve.  See: Public’s Esteem for Business Falls in Wake of Enron Scandal.  One news report after another gives corporate America low marks these days.  Consequently, the SEC has been tagged to bear the burden of carrying out accounting reform.  Accounting Reform Is Left in SEC’s Lap, The Wall Street Journal (SW Ed.), 2002 April 17; Section C:5 (Col. 4).

Prediction:  If this proposed rule affects you, expect to file (or receive) reports faster in the near future.  As an “accelerated filer” (in SEC lingo), start now to figure how to use technology and existing resources, if possible, to meet the new filing requirements.  For more information on these proposed rules, feel free to call my capable SEC Partner, Fred Stovall, or me at (214) 758-1500.

Tip: As a lessor or lender, you can benefit from the faster reporting to evaluate your customer’s financial health.  Take advantage of the earlier reporting and web access.  Watch for accounting changes in the reports that may affect how you judge financial statements and the overall company performance. 

If someone offered you a way to defer your tax liability on disposing of an asset for very little effort and expense, would you do it?  If you like saving money on your current tax bill, a like-kind exchange may be just the ticket for you.  Thanks to Lombard U.S. Equipment Finance Corporation, a member of The Royal Bank of Scotland Group, for suggesting this topic.

A like-kind exchange is a tax benefit that you can take when exchanging real estate or capital equipment for like-kinds of assets. As the taxpayer, you can defer capital gains taxes from the sale of an old asset when you replace it with like-kind property pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (Code).  

Any U.S. taxpayer such as a lessee or other buyer is eligible for this tax benefit. The taxpayer simply replaces existing business use or investment use property with similar assets in a like-kind or tax-deferred exchange transaction.  Assets eligible for like-kind exchanges include aircraft, real estate, vehicles, heavy equipment, agricultural machinery and even billboards.

Terms to Know:

* Like-Kind Property:  Property of the same nature and kind used in a like manner by the taxpayer.  For tangible personal property like aircraft, you can exchange assets of a “like-kind” or “like-class.”  For example, like-class for aircraft, fall into a General Asset Class as defined in the regulations under the Code.  The General Asset Class encompasses airplanes (airframes and engines), except those used in commercial or contract carry of passengers or freight, and all helicopters (airframes and-engines) (asset class 00.21).

* Qualified Intermediary:  The entity that helps you complete the exchange by taking the rights (but not the obligations) in contracts to sell “relinquished property” and to buy the “replacement property.”

Tip: Select your qualified intermediary carefully as the “QI” may guide you through this transaction and handle the cash flow.  For examples, check out the QIs listed below.

* Relinquished Property:  The property that you sell or exchange that can create a taxable capital gain on your tax return.  For example, this property could be an old aircraft that you want to sell to get a newer one.

* Replacement Property:  The property that you acquire (such as the newer aircraft). You exchange the relinquished property (the old aircraft) for the replacement property (the new aircraft) and defer capital gain that you would pay if you simply sold the relinquished property (old aircraft).  This exchange works the same for any eligible property. For example, you can exchange one office building for another one located in the same state or another state.

Purpose of Like-Kind Exchange:

The purpose of a like-kind exchange is to save the taxpayer from paying capital gains at the time of the sale.  When you defer a tax payment (the capital gains tax) you save money.  You do pay the tax eventually, but you can defer that day of reckoning as long as you continue to complete valid exchanges under Section 1031 of the Code. 

*Example:  Sale of a printing press versus a like-kind exchange of the same printing press:

            *Effect:  The taxpayer in the like-kind exchange pays no income taxes at the time of the sale.  The taxpayer in the sale transaction does pay $360,000 to the U.S. Treasury.  In the sale deal, the taxpayer lost the opportunity to reinvest or deploy the $360,000 in its business.  To make this point clear, if the taxpayer that exchanges his property reinvests at a 10 percent return, he earns $36,000 where the other taxpayer earns nothing each year.

How the Exchange Works:  Several steps exist in these transactions after the taxpayer establishes a contractual relationship with its QI.  The steps for the most basic transaction generally occur as follows:

*First, the taxpayer assigns the rights (but not the obligations) to the contract/purchase order for the sale of the relinquished property (for example, an old printing press) to a buyer.  The taxpayer passes title to the relinquished property directly to the buyer (and bypasses the QI).

*Warning:  Sales and use taxes may arise in these transfers.

*Second, the buyer pays the proceeds of the sale of the relinquished property (the old printing press) to the QI.  The QI puts these funds in an exchange account for the benefit of the taxpayer.  Note: The taxpayer must clearly identify the replacement property (for example, a new printing press) within 45 days after the sale and transfer of the relinquished property.  The taxpayer must generally complete the purchase of the replacement property (the new printing press) within 180 days after the transfer and sale of the relinquished property (the old printing press). 

*Third, the taxpayer assigns the rights (but not the obligations) to the purchase contract/purchase order to the QI for the replacement property (the new printing press).  The taxpayer directs the QI to pay the seller the funds received by the QI from the sale of the relinquished property (the old printing press). If extra money is needed after applying the proceeds of the sale of the relinquished property to the buyer, the taxpayer (or its lessor) sends the additional funds to the QIs exchange account to pay any remaining price for the replacement property (the new printing press).  The seller then passes title to the new asset (the new printing press) directly to the taxpayer-buyer (and bypasses the QI).

End Result:  The taxpayer ends up with the replacement property (the new printing press) and defers to $360,000 of capital gains tax. A lessor can then lease the replacement property to the lessee.

Some of the Players: Bank subsidiaries, independent companies such as title companies, and insurance companies act as QIs.  For example, check out the following QIs:

*APEX Property Exchange Inc.  JP Morgan Chase Bank recently purchased APEX.  APEX has done many highly structured exchanges and actively participates in the transactions.  Its web site contains some helpful “white papers” to explain like-kind exchanges for tangible personal property such as aircraft and real estate.

*Chicago Deferred Exchange Corporation  This QI is a subsidiary of LaSalle Bank, N.A. and an ABN Amro affiliate.  It offers a simple but detailed explanation on its web site of the rules, process and economics for like-kind exchanges.  The web site also answers frequently asked questions. 

*First American Exchange Corporation  This company is a subsidiary of a major title insurance company.  It focuses on real estate like-kind exchanges, but can probably assist in other types of transactions including aircraft. 

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8. Training Improves Your Results

In the May 2002 edition of ELT, The Magazine of Equipment Leasing and Finance, Mike Fleming wrote a good article you should read entitled Four Things Leasing Industry Executives Are Focusing on Today (at pages 26-38).  As President of the Equipment Leasing Association (ELA).  Fleming listed four items of significant importance to the industry: funding, productivity, competition and growth as the key issues of executives attending the “CEO Forum, the Industry Future Council and Executive Roundtable”. 

A common (but unsurprising) concern emerged from the participants.  They apparently lamented that their parent companies, funding sources, investors and others “don’t understand them or (the leasing) business.”  See page 27.  Training in a wide variety of leasing topics can help others understand what you do.  However, you have to make it happen.  You have to devote the time and resources.  The optimal execution of your strategies for success may depend on quality training.  Training helps people understand if you provide it in plain terms. 

As many of you are aware, I selectively offer training based in part on my book, Business Leasing for Dummies (BLFD)®.  My ideas have been field tested in the trenches by doing real deals for a variety of lessors and lessees, and honed by keeping current on industry issues. You can propose a customized format for your training ranging from a three-hour course to a two-day course. Other programs seem to provide canned material without real life daily applications without this customized approach.  Call me at (214) 758-1545 to discuss your interests and needs ranging from courses for beginners to high-level executives. 

Tip:  Whether or not you discuss your training needs with me, find trainers inside or preferably outside of your organization.  They can help you and your constituents better understand leasing, improve your productivity, and identify new opportunities.  For more support on the value of learning, click on: Learning Pays.

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9. Web Sites and Other Good Stuff

Here are some informative and useful sites that can help you understand the new bonus depreciation claim procedures, travel with ease outside of the U.S. and gain knowledge of the leasing business::

*Bonus Depreciation Revenue Procedure.   The April BLN discussed the new Bonus Depreciation Rules.  This new revenue procedure helps with understanding the procedures to claim (or not claim) the extra 30 percent bonus depreciation that you did not claim before June 1, 2002.  Look at the IRS Depreciation Rev. Proc. at http://www.irs.gov/pub/irs-irbs/irb02-20.pdf on pages 963 through 966 (pdf file pages 46 through 49).  Thanks to my tax partner, George Schutzer, for locating this document on the Internet for BLN.

            *FXConverter - Currency Conversion. When traveling on business or pleasure, you can plan ahead and easily figure how to convert foreign currency at http://www.oanda.com/convert/classic .  It provides an easy currency exchange table for 164 currencies in many different languages.  It also enables you to buy currency, to receive direct delivery of currency, and to obtain news, analysis and trading information on currencies.

            *Equipment Leasing and Finance Foundation.  At http://www.leasefoundation.org  you can obtain publications and resources on a vast array of leasing and industry issues.  The foundation operates on private donations, and the ELA would greatly appreciate it if you would visit the site and contribute to the foundation.

             *Cheap Airfares in Europe and Beyond.  If you think Southwest Air provides good air fares, take a look at really low, low prices of 21 airlines in Europe at http://www.europebyair.com .  Go to http://www.aerfares.net,  a specialty low-fare site, to find the cheapest fares in Europe from Ryanair, EasyJet, Go, Buzz, Virgin, BMI and Sterling. If you want a more expansive search, go to http://www.farechase.com . This site claims that “FareChase searches all the major travel websites to find you the best deals available throughout the internet.”

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10. A Message From the Publisher, David G. Mayer

Please forward this e-mail to other people whom you know. You may, for this purpose, disregard the Patton Boggs distribution restriction that appears at the bottom of this email.

David 

David G. Mayer 
Patton Boggs LLP
2001 Ross Avenue
Suite 3000
Dallas, Texas 75201
(214) 758-1545 (phone)
(214) 758-1550 (fax)
E-Mail: dmayer@pattonboggs.com
© David G. Mayer 2002

NOTE: You may receive BLN from other people and that often occurs. To subscribe or unsubscribe, or to change your address, simply click here or send a message to bln@pattonboggs.com) and put "Subscribe", "Remove" or "Change" in the Subject Line. Thanks.

The "For Dummies" part of my book, Business Leasing For Dummies ®, is a registered trademark of Hungry Minds, Inc.