equipment leasing partnership

Type of partnership that allows for one party to purchase equipment such as computer machines, construction equipment, or other mechanical devices and then lease the equipment to another party for an agreed upon cost. The purchaser of the equipment runs the biggest risk because if the leaser fails to pay or if the purchaser is unable to lease the equipment, the purchaser absorbs all costs associated with the transaction. However, the owner does reap all the tax benefits associated with the equipment, so this type of partnership has the ability to be very lucrative for the owner. Rental car and moving truck companies are an example of an equipment leasing partnership.