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F.2d 745 (5th Cir. 1952), revg. a Memorandum Opinion of this
Court dated Sept. 20, 1950, as authorities to support its
position. Petitioner quotes Revenue Ruling 55-540, 1955-2 C.B.
at 41, as follows:
Whether an agreement, which in form is a lease, is in
substance a conditional sales contract depends upon the
intent of the parties as evidenced by the provisions of
the agreement, read in the light of the facts and
circumstances existing at the time the agreement was
executed. In ascertaining such intent no single test,
or any special combination of tests, is absolutely
determinative. No general rule, applicable to all
cases, can be laid down. Each case must be decided in
the light of its particular facts. * * *
Petitioner concludes that, because there is no general rule on
how to treat these arrangements, there is substantial authority
to treat them as petitioner did on its returns. However,
petitioner's recitation of Revenue Ruling 55-540 is incomplete.
The ruling sets forth an "economic" test and continues as
follows:
However, from the decisions cited below, it would
appear that in the absence of compelling persuasive
factors of contrary implication an intent warranting
treatment of a transaction for tax purposes as a
purchase and sale rather than as a lease or rental
agreement may in general be said to exist if, for
example, one or more of the following conditions are
present: [Id. at 41.]
The conditions following in the ruling that would indicate a
sale include facts where: The lessee will acquire title upon the
payment of a stated amount of "rentals", which under the contract
he is required to make; the total amount that the lessee is
required to pay for a relatively short period of use constitutes
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