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conditional sale
(redirected from conditional sales)

   Also found in: Dictionary/thesaurus, Financial 0.01 sec.

conditional sale n. a sale of property or goods which will be completed if certain conditions are met (as agreed) by one or both parties to the transaction. Example: Hotrod agrees to buy Tappit's 1939 LaSalle for $1,000 cash if Tappit can get the car running by September 1st. (See: sale)



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[ILLUSTRATION OMITTED] Mixing the use of true leases and conditional sales leases can help a business avoid exceeding the $800,000 cap because leased equipment does not qualify for Section 179.
Conditional sales (sales where possession of property is transferred but ownership passes only after certain conditions are fulfilled, for example on full payment of the purchase price by the recipient), and instalment sales, (sales where the ownership of the property transfers immediately, but the property is paid for in instalments), are both "sales" for the purposes of the override rule.
A capital lease (akin to a conditional sales contract) is when the lessee will own the equipment at end of term with the last payment or nominal payment (usually $1 or $10).
 
 
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